2016 (2) TMI 1246 - Tri - Insolvency and Bankruptcy

Disciplinary proceedings against RP - Condonation of delay in execution of the CIR process - time limitation - HELD THAT - As the remarks had earlier been communicated to the IBBI, they had initiated disciplinary proceedings, and continue to do so despite our communication that the explanation by the RP for delay has been accepted by this Bench and we had expunged our observations. In view of the same we had also directed IBBI to treat the matter as closed. Their persistence in continuing with the disciplinary action, in the light of our accepting the reply of the RP and exonerating him, is inexplicable. All disciplinary proceedings initiated by the IBBI be quashed and the matter be treated as closed - application disposed off.

Summary

Issues: Disciplinary proceedings initiated by IBBI despite acceptance of RP's explanation for delay in CIR process.

Analysis:
1. Acceptance of RP's Explanation: The Tribunal had previously accepted the explanation provided by the Resolution Professional (RP) for the delay in executing the Corporate Insolvency Resolution (CIR) process. This acceptance led to the expunging of earlier observations made by the Bench.

2. Communication with IBBI: Despite the Tribunal's communication to the Insolvency and Bankruptcy Board of India (IBBI) regarding the acceptance of the RP's explanation and the subsequent exoneration, IBBI continued with disciplinary proceedings against the RP.

3. Quashing of Disciplinary Proceedings: The Tribunal found IBBI's persistence in pursuing disciplinary action against the RP, despite the Tribunal's acceptance of the explanation and exoneration of the RP, as inexplicable. Consequently, the Tribunal directed the quashing of all disciplinary proceedings initiated by IBBI against the RP and instructed that the matter be treated as closed.

4. Final Disposal of Case: The Tribunal, in light of the above findings and directions, disposed of the case bearing CA 781/2018. This disposal signified the conclusion of the legal proceedings related to the issues at hand.

This detailed analysis highlights the key aspects of the judgment, focusing on the acceptance of the RP's explanation, the communication with IBBI, the quashing of disciplinary proceedings, and the final disposal of the case.