TaxTMI 
TaxTMI 
2021 (2) TMI 1000
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....is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI (IPA) and an IP registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-001/IP-P00240/2017-2018/10469. Background 1.1 The IBBI had issued on 27th August, 2020, the SCN to Mr. Rajesh Samson for accepting the assignment as the Interim Resolution Professional (IRP) in the Corporate Insolvency Resolution Process (CIRP) of South East U.P. Power Transmission Company Limited (CD) after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) from his IPA. The public announcement was made on 17th July 2020. 1.2 Mr. Samson submitted reply to the SCN on 3rd September, 2020. The IBBI referred the SCN,....
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....of assignment by Mr. Samson took place on 4th April, 2019, i.e., much prior to the introduction of Regulation 7A of the IP Regulations on 23rd July, 2019. The section 7 application was filed by the financial creditor on 11th April 2019 and admission order was passed by the AA on 16th July, 2020. (iii) The AFA application by Mr. Samson was submitted on 22nd May, 2020 to his IPA. (iv) The Committee of Creditors (CoC) in its 1st meeting held on 13th August, 2020 unanimously voted to appoint Mr. Shailesh Verma as the Resolution Professional in the CIRP of the CD, thereby replacing Mr. Samson. This was confirmed by the AA vide order dated 7th September, 2020. Analysis and Findings 4. The DC after taking into consideration the SCN, the repl....
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....dance with its bye-laws regulation. An application for grant of AFA can be made by the IPs to the IPA under para 12A of said bye-laws. An IP who is more than 70 years of age is ineligible to make an application for AFA under para 12A (2)(e) of the said bye-laws. 4.4 Further, Section 208 of the Code also casts an obligation to abide by the code of conduct 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 h....
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....f integrity and professional competence for rendering professional service, representation of correct facts and correcting misapprehension, not to conceal material information and not to act with malafide or with negligence. 5. In the present matter, Mr. Samson gave written consent to act as an IRP in the CIRP of the CD on 4th April, 2019 and application under section 7 of the Code was filed before the AA on 11th April 2019. He was appointed as IRP by the AA vide order dated 16th July, 2020 initiating CIRP of the CD on an application under section 7 of the Code by Power Finance Corporation Limited claiming to be financial creditor and public announcement was made by IRP on 17th July, 2020. Mr. Samson gave his consent prior to the cut off d....