The IBBI New Delhi Bench has cancelled the registration of IP. The Disciplinary Committee (DC) notes that IP did not respond to notices from various IAs on numerous occasions. Moreover, he failed to submit any forms listed in regulation 40B of the CIRP Regulations, which are designed to aid Insolvency Professionals (IPs) in complying with statutory obligations related to the submission of records and facilitate effective monitoring by the Board.
The combination of non-filing of CIRP forms and non-cooperation with IAs was held to be a deliberate dereliction of duties mandated by the statute. The DC upholds the contraventions alleged in both the show cause notices (SCNs).
Additionally, IP took no further steps for the CIRP of CD-1 and remained unresponsive to creditors submitting claims, leading the Board to believe that he violated sections 17, 18, 20, 208(2)(a) and (e) of the Code, regulations 40A of the CIRP Regulations, and clauses 1, 2, 13, and 14 of the Code of Conduct.
IP repeated contraventions, lack of responsiveness, and absence from proceedings demonstrate his lack of diligence and professionalism. Considering the potential derailment of the resolution process due to an unresponsive IP, the DC, in accordance with the powers conferred under section 220 of the Code and regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017, hereby cancels the registration of IP.
A Single Bench of the Disciplinary committee comprising Sudhaker Shukla, Whole time member, observed that If Insolvency Professional (IP), becomes unresponsive to the various authorities and stakeholders in the eco system of Insolvency Resolution Process, it will lead to derailment of the entire resolution process of the corporate debtor for which the IP is appointed. Keeping this in view, the DC in exercise of the powers conferred under section 220 of the Code read with regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 cancelled the registration of IP.
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