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Natural justice in insolvency-professional discipline requires disclosed material; notices based on extraneous material and ignored defences are vitiated.
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Show-cause notices initiating disciplinary action against insolvency professionals must be based on material disclosed or at least identified to the noticee, particularly where an investigation report has found no actionable material. Reliance on undisclosed material extraneous to the investigation undermines procedural fairness and vitiates the notice. Disciplinary findings must also address relevant defences and contextual material, including creditor representation, absence of stakeholder objections, the scope of alleged consultation failures, and explanations for auction delays. Disregarding such material breaches natural justice; the resulting suspension order was quashed, while the regulatory challenge remained open.
Show-cause notices initiating disciplinary action against insolvency professionals must be based on material disclosed or at least identified to the noticee, particularly where an investigation report has found no actionable material. Reliance on undisclosed material extraneous to the investigation undermines procedural fairness and vitiates the notice. Disciplinary findings must also address relevant defences and contextual material, including creditor representation, absence of stakeholder objections, the scope of alleged consultation failures, and explanations for auction delays. Disregarding such material breaches natural justice; the resulting suspension order was quashed, while the regulatory challenge remained open.
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