TaxTMI 
TaxTMI 
2021 (3) TMI 453
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.... Mumbai-400053 who 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-P00054/2017-2018/10128. Background 1.1 The IBBI had issued on 27th August, 2020, the SCN to Mr. Abhay Narayan Manudhane for accepting the assignment as the Resolution Professional (RP) in the Corporate Insolvency Resolution Process (CIRP) of Housing Development and Infrastructure Limited (CD) after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) from his IPA. 1.2 Mr. Manudhane submitted reply to the SCN on 4th September, 2020. The IBBI referred the SCN, response of Mr. Manudhane ....
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....3rd September, 2019 and directed that, "with a view to give opportunity to Chairman of HDIL to settle claim of Bank of India, the IRP not to constitute Committee of Creditors (CoC) till next date". This direction was vacated by the NCLAT vide order dated 17th December 2020. The 106 days lost during this process were excluded from the CIRP by the AA vide order dated 17th February, 2020. (iii) In the first Committee of Creditors (CoC) meeting held on 8th January, 2020, the CoC ratified the appointment of Mr. Manudhane as RP. (iv) Since the provision relating to AFA was newly inserted and made effective on 1st January, 2020, Mr. Manudhane was under the impression that it is not applicable for the ratification to act as RP. In....
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....tute of Insolvency Professionals of ICAI defines in para 4(1)(aa) the expression "authorisation for assignment" as an authorisation 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 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 a....
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....ery 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 material information and not to act with malafide or with negligence. 5. In the present matter it is observed that, Mr. Manudhane had provided his consent to accept the assignment as IRP in Form-2 on 10th December, 2018 in the CIRP of the CD and th....