Valid authorisation for assignment not required where the assignment was accepted before the Regulation 7A cutoff date.

Regulation 7A of the Insolvency Professionals Regulations requires a valid authorisation for assignment before an assignment is accepted or undertaken after 31 December 2019. Where the insolvency professional had accepted the assignment before that cutoff date, later confirmation of appointment did not change the date of acceptance, so the alleged breach was not attracted. The Board also noted that disciplinary action had already been taken by the insolvency professional agency, including a warning and a direction not to take new assignments without authorisation. No further disciplinary direction was therefore called for, and the show-cause notice was disposed of without adverse action.

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Issues: Whether an insolvency professional who accepted an assignment before 31 December 2019, but whose appointment was confirmed later, could be proceeded against for lack of a valid authorisation for assignment under Regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Analysis: Regulation 7A requires an insolvency professional to hold a valid authorisation for assignment before accepting or undertaking an assignment after 31 December 2019. The record showed that the professional had accepted the assignment on 28 August 2019, before the cutoff date, and the later confirmation of appointment did not alter the date of acceptance. The order also noted that the professional had already faced disciplinary action from the insolvency professional agency, including a warning and a direction not to accept new assignments without authorisation. In these circumstances, the regulatory breach alleged in the show-cause notice was not pursued further by the Board's disciplinary process.

Conclusion: No further direction was called for against the insolvency professional, and the show-cause notice was disposed of without adverse action.

Ratio Decidendi: Regulation 7A is not attracted where the assignment was accepted before 31 December 2019, and no additional disciplinary direction is warranted where the professional has already been dealt with by the relevant insolvency professional agency.

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