TaxTMI 
TaxTMI 
2018 (9) TMI 1739
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....01. Mr. Goel is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI and an Insolvency Professional registered with the Board with registration number IBBI/IPA-001/IP-P00625/2017-2018/11081. Mr. Goel responded to the SCN vide his reply dated 3rd April, 2018. The Board referred the SCN, response of Mr. Goel to the SCN and other material available on record to the Disciplinary Committee (DC). 1.2 From material available on record, the DC notes the following sequence of events leading to the issuance of the SCN: 1.2.1 Mr. Goel was registered as an insolvency professional by the Board on 28th September, 2017. 1.2.2 Mr. Goel, along with Mr. Tilak Raj Chawla, incorporated an LLP with the nam....
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....' has been dropped from the name 'IBBI Insolvency Practitioners LLP' or not. Since it was not done, the Board, vide e-mail dated 9th March, 2018, again sought reasons for delay from Mr. Goel. 1.2.8 Mr. Goel, vide mail dated 10th March, 2018 informed the Board that the RoC has raised objections in the form for change of name and he has filed a fresh form for the same on 7th March, 2018. 1.2.9 Mr. Goel, vide a mail dated 15th March, 2018, forwarded a communication dated 15th March, 2018 received by him from the Registrar of Companies, objecting to the form submitted by him for rectification of name. 1.2.10 On consideration of the responses of Mr. Goel on the clarifications sought by the Board and record of the Compa....
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....solvency Practitioners LLP". (d) The failure of Mr. Goel to change the name of the LLP despite repeated requests by the Board casts serious doubts on his intention as well as the understanding of the law by Mr. Goel. (e) Clause 2 of the First Schedule to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 states that an insolvency professional must not represent any facts or situations and should refrain from being involved in any action that would bring disrepute to the profession. (f) Mr Goel has contravened the provisions of regulation 7(2) (b) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 and clauses 1 and 2 of the Code of Con....
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....ctitioners LLP" is not promoted by the Board. There is no relationship whatsoever between the "IBBI Insolvency Practitioners LLP" and the Board except that Mr. Goel, registered by Board as an insolvency professional and is a partner of "IBBI Insolvency Practitioners LLP". The use of 'IBBI' by a commercial entity, without any authorisation from IBBI is not permissible. (c) Mr. Goel is a qualified Chartered Account and a registered insolvency professional. He knows the implications of using the name IBBI. As a registered professional, he cannot do anything that misleads the stakeholders of insolvency and bankruptcy. It is illegal to use 'IBBI' as part of the name of LLP promoted by an insolvency professional. (d) Mr. Goel ev....
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....e DC. (g)Mr. Goel informed on 4th May, 2018 that he has entered into a new LLP agreement on 3rd May, 2018. (h)Mr. Goel, vide mail dated 6th August, 2018 has informed that he wishes to close the LLP and submitted relevant papers for the same to the RoC. (i) DC notes that even on the date of issue of this Order, the Company Master Data on the website of the Ministry of Corporate Affairs carries the name "IBBI Insolvency Practitioners LLP". (j) The DC notes that clause 2 of the Code of Conduct for Insolvency Professionals under the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 casts an obligation on an insolvency professional not to misrepresent any facts or situations....
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....pproved. He has been procrastinating for the last eight months to change the name despite continuous follow up, including a show cause notice, from the Board. These actions of Mr. Goel are contravention of the provisions of clauses 1, 2, 10, 12, 14 and 24 of the Code of Conduct in the First Schedule to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. 6. ORDER 6.1 Mr. Goel has misled the stakeholders, the Board and the DC. His conduct is in violation of section 208 read with regulations 7(2)(a) and 7(2)(b) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 and clauses 1, 2, 10, 12, 14 and 24 of the Code of Conduct in the First Schedule for Insolvency Pr....