Conflict disclosure and professional disability bar continued representation by liquidator's counsel after conviction and licence suspension.

A counsel engaged for a liquidator could not continue in that role after failing to make the disclosure required under Regulation 7(3) of the IBBI (Liquidation Process) Regulations, 2016 and after his licence to practise was suspended following conviction. The non-disclosure of a pecuniary or personal relationship with stakeholders or the corporate debtor, combined with the professional disability arising from conviction, justified refusal of continued representation. Section 24A of the Advocates Act, 1971 was noted as reinforcing the bar on practice after conviction. The conflict-of-interest finding independently supported disqualification from acting as professional counsel.

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Issues: Whether a counsel for the liquidator, who had not made the disclosure required under Regulation 7(3) of the IBBI (Liquidation Process) Regulations, 2016 and whose licence to practise had been suspended after conviction, could continue to represent the liquidator.

Analysis: Regulation 7(3) required a professional engaged to assist the liquidator to disclose any pecuniary or personal relationship with stakeholders or the corporate debtor as soon as the relationship became known. The admitted non-disclosure, coupled with the subsequent suspension of the advocate's licence and his conviction, established a legal disability to continue appearing as counsel. The prohibition on enrolment of a convicted person under Section 24A of the Advocates Act, 1971 supported the conclusion that continuance in practice after conviction could not be sustained. The earlier finding of conflict of interest also supported the refusal to permit continued representation.

Conclusion: The counsel could not continue to represent the liquidator, and the order disqualifying him from acting as professional counsel was justified.

Final Conclusion: The appeal failed and the tribunal's order was sustained, leaving the challenged restriction on representation in force.

Ratio Decidendi: A person under a professional disability, including suspension of licence and disqualification following conviction, cannot continue to act as counsel where the governing regulations also require disclosure of conflict-related relationships.

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