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2020 (9) TMI 743
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....3. 1.1 The IBBI had issued on 28th August, 2020, the SCN to Mr. Ravi Sharma for accepting the assignment of the voluntary liquidation in Liquidation process of Indian Transelectric Company Limited and A.B.S. Enterprises Private Limited after 31st December 2019 without holding a valid Authorisation for Assignment (AFA) issued to him by his IPA. 1.2 Mr. Sharma submitted reply to the SCN dated 3rd September, 2020. The IBBI referred the SCN, response of Mr. Sharma to the SCN and other material available on record to the Disciplinary Committee (DC) for disposal of the SCN in accordance with the Code and Regulations made thereunder. The IP availed an opportunity of personal hearing before the DC on 9th September 2020. Show Ca....
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.... passed imposing penalty of Rs. 10,000/-; (iv) he has applied for AFA but the same has been rejected due to show cause notice issued IPA. Analysis and Findings 4. The DC after taking into consideration the SCN, the reply to SCN, the oral and written submission of Mr. Ravi Sharma and also the provisions of the Code, rules and the regulations made thereunder finds as follows. 4.1 The DC notes that the provisions of the Code and regulations are spelt out in a plain and unambiguous language. Regulation 7A of IP regulations requires for any IP to have AFA before undertaking any assignment after 31st December 2019. Regulation 7A reads as follows: "7A. An insolvency professional shall not accept or undertake ....
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....and comply with all requirements and terms and conditions specified in the byelaws of the insolvency professional agency of which he is a member. Section 208(2) provides as follows: "208. Functions and obligations of insolvency professionals.- (2) Every insolvency professional shall abide by the following code of conduct: - (a) to take reasonable care and diligence while performing his duties; (b) to comply with all requirements and terms and conditions specified in the byelaws of the insolvency professional agency of which he is a member; and (e) to perform his functions in such manner and subject to such conditions as may be specified." 4.5 The DC further notes that the certificate of ....
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.... conceal material information and not to act with malafide or with negligence. 4.7 In the present matter, Mr. Sharma accepted the assignment of voluntary liquidation in matter of Indian Transelectric Company Limited on 2nd March 2020 and A.B.S. Enterprises Private Limited on 5th June 2020 without holding valid AFA after 31.12.2019 which is in express contravention of regulation 7A of IP Regulations. This requirement also applies to IPs undertaking voluntary liquidation process under the Code. In consequence, he also contravened code of conduct under section 208(2)(a) and(e) of the Code and regulations 7(2)(a) and (h) of the IP Regulations read with clauses 1, 2, 11, 12 and 14 of the Code of Conduct contained in the First Schedule o....