The Gujarat High Court has recently taken up the matter of disciplinary proceedings against Chartered Accountant Sunil Kumar Agarwal (Read Story) and issued notice to the Insolvency and Bankruptcy Board of India (IBBI).
Mr. Sunil Kumar Agarwal was an Insolvency Professional (IP) registered with the Insolvency and Bankruptcy Board of India (IBBI). He was appointed as the Interim Resolution professional (IRP) who was later confirmed as Resolution Professional (RP).
A Disciplinary Committee of IBBI comprising Whole TIme Member Sudhaker Shukla had imposed a fine of Rs. 2 lakhs on the Chartered Accountant/Insolvency Professional for the contravention of Section 12 of the Insolvency and Bankruptcy Code (IBC) and other provisions and codes of conduct, along with a probation of 4 months by the order IBBI/DC/141/2022 dated 21st November 2022.
Aggrieved by the order, the CA approached the Gujarat High Court in a Special Civil Application.
Percy Kavina, Vishal Dave and Nipun Singhvi represented the petitioner in the admission stage.
It was observed by the Single Bench of Justice Biren Vaishnav that, “it was C.O.C which has not taken efficient measures to complete the C.I.R.P of the Corporate Debtor Company.”
It was also noted that, “prima facie, having read the provisions of Section 12(2) of the I.B.C and the contents of the order under challenge which extensively quoted the observations of the adjudicating authority, it is evident that there cannot be any negligence attributed to the petitioner who was to follow the provisions of Sub-section 2 of Section 12 of I.B.C.”
Resultantly, Notice was directed to be issued to the respondent-Insolvency and Bankruptcy Board of India, on a condition that the petitioner deposits Rs.2 Lakhs as envisaged under the order by way of a penalty in the registry, on or before 09.12.2022, returnable on 17.01.2023 as an ad-interim relief.
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