Professional Misconduct: DC directs IBBI to Conduct Inspection and Submit Report wrt Excess Fee Charged by ICAI Liquidator [Read Order]
Professional Misconduct – DC directs IBBI to Conduct Inspection and Submit Report wrt Excess Fee Charged by – ICAI Liquidator – TAXSCAN
Professional Misconduct – DC directs IBBI to Conduct Inspection and Submit Report wrt Excess Fee Charged by – ICAI Liquidator – TAXSCAN
The Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI) has recently directed the Board to conduct inspection and submit a report with respect to the allegation of excess fee charged by the liquidator.
The Insolvency and Bankruptcy Board of India (IBBI) had appointed an Investigating Authority (IA) to conduct the investigation of Mr. Amit Gupta in the liquidation process of Hindustan Dorr Oliver Limited (CD).
The IBBI issued a Show Cause Notice Mr. Amit Gupta, based on the findings in the investigation report in respect of his role as liquidator of CD and material available on record. Mr. Amit Gupta submitted his reply to SCN vide email dated 03.04.2023.
The Board observed that Mr. Amit Gupta has charged the excess fees as the liquidator of the CD and held the prima facie view that he has inter alia violated Section 35(1)(d)&(o) and 208(2)(a)&(e), Regulation 4(2) of the Liquidation Regulations and Regulation 7(2)(h) of IP Regulations read with clauses 1, 3 and 25 the Code of Conduct as specified in the First Schedule of IP Regulations (Code of Conduct).
The Liquidator, among other things, submitted that the computation of fee is as per his understanding of the provisions of the Code and the Liquidation Regulations. Regulation 4(3) of the Liquidation Regulations (as applicable in the present case) provides that “the liquidator shall be entitled to a fee as a percentage of the amount realized net of other liquidation costs, and of the amount distributed” as per the table provided under the said Regulation. He also referred to section 34 and section 36 of the Code.
At this instance, the DC observed that documents submitted are insufficient to conclude that the amount of excess fee charged by Mr. Amit Gupta.
The Disciplinary Committee, thereby issued direction to the Board to conduct the inspection with regard to fee charged by Mr. Amit Gupta in all the liquidation process(es) handled/being handled by him as the liquidator and to submit the report within two months.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
