Temporary Surrender and Revival of Professional Membership of an Insolvency Professional-Circular No. IBBI/IP/021/2019 dated 2nd May, 2019

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Temporary Surrender and Revival of Professional Membership of an Insolvency Professional

 

Regulation 10 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (IP Regulations) read with clause 26 of the Schedule to the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (Model Bye-Laws Regulations) provide for temporary surrender and revival of professional membership by an Insolvency Professional (IP).

2. Temporary surrender of professional membership creates inconveniences where the IP is:

(a) conducting a process – corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy – under the Code;
(b) is acting as an authorised representative representing any class of financial creditors;
(c) is included in the panel under ‘Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018’ or similar Guidelines,
(d) is included in the panel under ‘the Guidelines for Appointment of Insolvency Professionals as Administrators under the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018’ or similar Guidelines; or
(e) is acting as an Administrator under ‘the Guidelines for Appointment of Insolvency Professionals as Administrators the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018’ or similar Guidelines.

3. It is, therefore, advised that the Insolvency Professional Agency (IPA) shall not ordinarily accept temporary surrender of professional membership of an IP in cases under Para 2.

4. It is further advised that the following forms may be used to process acceptance of temporary surrender and revival of professional membership of an IP:

a. Form A: Application by an IP to IPA for temporary surrender;
b. Form B: Intimation to the Board on acceptance of temporary surrender by the IPA;
c. Form C: Letter of acceptance of temporary surrender by the IPA to IP;
d. Form D: Application by an IP for revival of his professional membership;
e. Form E: Intimation to the Board on revival of professional membership by the IPA; and
f. Form F: Letter of revival of professional membership by the IPA to IP.

5. This circular is issued in exercise of the powers conferred under clause (aa), (g) and (p) of sub-section (1) of section 196 of the Insolvency and Bankruptcy Code, 2016 in consultation with the Insolvency Professional Agencies.

(Circular No. IBBI/IP/021/2019 dated 2nd May, 2019)

Encl.: Annexure I – VI for Form A – F

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