The Disciplinary Committee (DC) of the Insolvency and Bankruptcy Board of India (IBBI) has recently imposed a fine of Rupees Five Lakhs on Insolvency Professional Sonu Jain along with a probation period of four months. The Authorisation for Assignment (AFA) of the Resolution Professional (RP) was also suspended till the completion of the said probation period.
The alleged contravention of the provisions of the Insolvency and Bankruptcy Code, 2016 was raised in respect of four corporate debtors.
Additional grounds of misconduct raised include the appointment of a single valuer even when the Code and the Regulations made thereof mandate the requirement of two registered valuers to conduct the valuation of the Corporate Debtor-I, the DC took the lenient view as prevalent circumstances of the COVID-19 pandemic and lack of valuers in Kutch may have prevented the Resolution Professional from adhering to the stipulations of the statute.
The delay in filing progress reports by the RP was viewed as serious negligence by the Disciplinary Committee whereas the steep fees of claimed CIRP Cost of Rs. 6,49,000/- (inclusive of Rs. 1,50,000/- IRP fees) were found to be not received by the Professional.
It was thus observed by the DC that, Ms. Sonu Jain was conducting CIRP and Liquidation proceedings in a very casual and careless manner which is not at all expected from an Insolvency Professional in matters of keeping records and submitting them to the Inspecting Authority.
The declaration of CoC being in order with aid of operational creditors, despite the absence of the sole financial creditor, is a serious contravention, as observed by the board and was imposed with the fine and probation.
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