Suspension of Insolvency Professional Upheld for Procedural Misconduct in E-Auction; Current Assignments May Continue.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The High Court upheld the Disciplinary Committee's order suspending the petitioner's registration as an Insolvency Professional for two years due to procedural irregularities in conducting an e-auction as a Liquidator. The key points are: Principles of natural justice were duly followed by issuing a show cause notice, granting an opportunity to reply and oral hearing. The order was based on NCLT and NCLAT orders finding irregularities in the short notice period for the e-auction. The two-year suspension was not disproportionate considering the adjudicated misconduct. The petitioner can continue ongoing assignments at the discretion of creditors/stakeholders. The High Court found no perversity, irrationality or disproportionality in the suspension order and dismissed the writ petition challenging it.....