Disciplinary committee powers under insolvency law cover penalty, disgorgement, restitution, and appeal against orders. The Board must constitute one or more disciplinary committees, and the show cause notice must be referred to such committee. After hearing the service provider, the committee may impose penalty, suspend or cancel registration, or direct disgorgement where sufficient cause exists. Penalty may be based on the loss caused or unlawful gain, with a capped amount where these are not quantifiable. Disgorged amounts may be used for restitution to an identifiable person who suffered direct loss, and an appeal lies to the National Company Law Appellate Tribunal within thirty days.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disciplinary committee powers under insolvency law cover penalty, disgorgement, restitution, and appeal against orders.
The Board must constitute one or more disciplinary committees, and the show cause notice must be referred to such committee. After hearing the service provider, the committee may impose penalty, suspend or cancel registration, or direct disgorgement where sufficient cause exists. Penalty may be based on the loss caused or unlawful gain, with a capped amount where these are not quantifiable. Disgorged amounts may be used for restitution to an identifiable person who suffered direct loss, and an appeal lies to the National Company Law Appellate Tribunal within thirty days.
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