Once a disciplinary proceeding is initiated by the IBBI against RP on the recommendation of AA, the final order is required to be passed by the IBBI & the AA can’t quash the proceeding initiated by IBBI – Insolvency and Bankruptcy Board of India (IBBI) Vs. Shri Rishi Prakash Vats & Ors. – NCLAT

Question arises for consideration before NCLAT is whether the Adjudicating Authority/National Company Law Tribunal has jurisdiction to quash the disciplinary proceedings once initiated by the IBBI. NCLAT set aside order and held that once a disciplinary proceeding is initiated by the IBBI on the basis of evidence on record, it is for the Disciplinary Authority, i.e., IBBI to close the proceeding or pass appropriate orders in accordance with law. Such power having been vested with IBBI and in absence of any power with the Adjudicating Authority/ (National Company Law Tribunal), the Adjudicating Authority cannot quash the proceeding, even if proceeding is initiated at the instance and recommendation made by the Adjudicating Authority/ National Company Law Tribunal.

Compliance with regulations 7 (2) (ca) & 13 (2) (ca) of the IBBI (Insolvency Professionals) Regulations, 2016

Compliance with regulations 7 (2) (ca) and 13 (2) (ca) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 Ref. : IBBI CIRCULAR No. No. IBBI/IP/020/2019 dt. 12th April, 2019   Regulation 7 (2) (ca) of the…

An insolvency professional(IP) must maintain complete independence in his professional relationships and should conduct the insolvency resolution, liquidation or bankruptcy process, as the case may be, independent of external influences-Mr. Dinkar T. Venkatasubramani- IBBI

An insolvency professional shall not influence the decision or the work of the committee of creditors or debtor, or other stakeholders under the Code, so as to make any undue or unlawful gains for himself or his related parties, or cause any undue preference for any other persons for undue or unlawful gains and shall not adopt any illegal or improper means-Mr. Dinkar T. Venkatasubramani- IBBI

IP must perform his defined role under the Code and must not usurp other’s role and must not allow others to usurp his role- Mr. Mukesh Mohan, Insolvency Professional- IBBI

No single creditor, whether secured or unsecured, irrespective of its voting power or share, can substitute the CoC. A RP must not engage in private communication with a creditor irrespective of his voting power.-Mr. Mukesh Mohan, Insolvency Professional- IBBI

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