TaxTMI 
TaxTMI 
2021 (3) TMI 248
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....l Member of the ICSI Institute of Insolvency Professionals (IPA) and an IP registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-002/IP-N00302/2017-2018/10860. 1.1 The IBBI had issued the SCN to Mr. Satinder Kapur on 28th August, 2020 for accepting the assignment as a liquidator in voluntary liquidation process of Buffalogrid Project (P.) Ltd. after 31st December 2019 without holding a valid Authorization for Assignment (AFA) issued to him by his IPA. 1.2 Mr. Kapur submitted reply dated 5th September, 2020 to the SCN. The IBBI referred the SCN, response of Mr. Kapur to the SCN and other material available on record to the Disciplinary Committee (DC) for disposal of the SCN in accordance wit....
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....rtently and unintentionally resulting from misunderstanding of the newly incorporated provisions. (iii) IPA has also issued the show-cause notice dated 24th July, 2020 and order dated 7th September, 2020 has also been passed wherein warning has been issued to Mr. Kapur to be extremely careful and diligent and that he should act strictly as per law and similar action should not be repeated. Further, the IPA directed that Mr. Kapur shall not accept any new assignment without obtaining Authorization for Assignment. Analysis and Findings 4. The DC after taking into consideration the SCN, the reply to SCN, the oral and written submission of Mr. Satinder Kapur and also the provisions of the Code, rules and the regulations made ther....
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....overning Board of Insolvency Professional Agencies) Regulations, 2016, which reads as under: "12A. Authorization for Assignment. (1) The Agency, on an application of its professional member, may issue or renew an authorization for assignment." 4.4 The Bye-Laws of ICSI Institute of Insolvency Professionals defines in para 4(1)(aa) the expression "Authorization for Assignment" as an authorization to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who is its professional member, in accordance with its bye-laws regulation. An application for grant of AFA can be made to the IPA under para 12A of said Bye-laws. 4.5 Further, Section 208 of the Code also casts an obligation....
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....ed; (h) abide by the Code of Conduct specified in the First Schedule to these Regulations;" 4.7 The credibility of the processes under the Code hinges upon the conduct and competence of the IP. Section 208(2) of the Code provides that every IP shall take reasonable care and diligence while performing his duties and to perform his functions in such manner and subject to such conditions as may be specified. Further, the Code of Conduct specified in the First Schedule of the IP regulations enumerates a list of code of conduct for insolvency professionals including maintaining of integrity and professional competence for rendering professional service, representation of correct facts and correcting misapprehension, not to conceal ma....