2021 (3) TMI 647

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....l 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-P00999/2017-2018/11646. Background 1.1 The IBBI had issued the SCN dated 27th August, 2020, to Mr. Girish Siriram Juneja for accepting the assignment as Resolution Professional (RP) in Corporate Insolvency Resolution Process (CIRP) of Reliable Paper (India) Limited (CD) after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) issued to him by his IPA. 1.2 Mr. Juneja submitted reply to the SCN vide e-mail dated 4th September, 2020. The IBBI referred the SCN, reply of Mr. Juneja and other material av....

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.... was later confirmed as RP in the first CoC meeting held on 6th January, 2020. Thus, he was under bona fide 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 submitted that he has not violated the provisions of the Code as he was appointed prior to 31st December, 2019 as the IRP. He has further stated that he has not undertaken any new assignment after the said assignment of the CD and had also 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. Juneja and also....

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....on "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 code of conduct: - (....

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....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. Juneja had given consent to accept the assignment as IRP in Form-2 on 12th April, 2019 in the CIRP of the CD and the date of commencement of the CIRP is 3rd December, 2019. However, it is also observed that Mr. Juneja was ratified as RP in the CIRP of the CD in the 1st meeting of the CoC held on 6t....