TaxTMI 
TaxTMI 
2021 (3) TMI 646
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....y, Borivali (E), Mumbai City, Maharashtra - 400066, who is a Professional Member of the Indian Institute of Insolvency Professional of ICAI (IPA) and an Insolvency Professional (IP) registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-001/IP-P00658/2017-2018/11107. Background 1.1 The IBBI had issued the SCN dated 28th August, 2020, to Mr. U. Balakrishna Bhat for accepting the assignment as Resolution Professional (RP) in corporate insolvency resolution process (CIRP) of Torus India Limited (CD) after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) issued to him by his IPA. 1.2 Mr. U. Balakrishna Bhat submitted reply to the SCN vide email dated 3rd Septembe....
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..... He was later confirmed as RP in the first CoC meeting held on 17th January, 2020. Thus, he was under bonafide belief that provision of Regulation 7A of the said IP Regulations 2016 was not applicable at the time when consent was given for appointment as IRP for the CD. (ii) He has further stated that he did not have any malafide intention for not obtaining the AFA and that the said lapse was not intentional and he earnestly apologized for the same. He stated that he had applied for an AFA from his IPA, i.e., IIPICAI and the same is pending with the IPA. Analysis and Findings 4.. The DC after taking into consideration the SCN, the reply to SCN, the oral and written submission of Mr. Bhat and also the provisions of the Code, ....
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....ression "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 to the IPA under para 12A of 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 bye laws 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 c....
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....nd 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 mala fide or with negligence. 4.7 In the present matter, Mr. Bhat had given consent to accept the assignment as IRP in Form-2 on 5th June, 2018 in the CIRP of the CD and the date of commencement of the CIRP is 20th December, 2019. However, it is also observed that Mr. Bhat was ratifi....