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2019 (9) TMI 586 - Tri - Insolvency and BankruptcyIssuance of notice to IBBI - grievance of the applicant is directed at the IBBI for not taking any action against the RP/Liquidator, Mr. Abhishek Anand pursuant to a complaint filed by him on 19.02.2019, under Section 217 of the IBC - HELD THAT - This Bench is of the opinion that the IBBI, which is the Regulatory Authority is competent to conduct its own work and it would not come within the purview of the Adjudicating Authority to question them on every complaint made by an Ex-Director of a Corporate Debtor. We are not inclined to issue notice on the CA till we are convinced of any misconduct and direct them to take action against an Insolvency Professional.
Issues:
1. Grievance against IBBI for not taking action on a complaint filed by Ex-Director 2. Authority of Adjudicating Authority to question IBBI on complaints 3. Progress report in liquidation process and allegations made 4. Change of hearing date Analysis: 1. The judgment pertains to a CA filed by the Ex-Director under Section 60(5) of the Code against IBBI for not acting on a complaint filed under Section 217 of the IBC. The Bench opined that the Regulatory Authority, IBBI, is competent to handle its work independently. The Adjudicating Authority should not interfere in every complaint by an Ex-Director. The Bench dismissed the CA, emphasizing the need for concrete evidence of misconduct before issuing notice or directing action against an Insolvency Professional. 2. The compliance with other requirements, such as providing a progress report in the liquidation process, was noted. Due to certain allegations, the Bench decided to investigate and resolve them promptly. Consequently, the Bench ordered a halt on any encumbrance or sale of the Corporate Debtor's assets until further instructions, ensuring a fair and transparent resolution process. 3. Additionally, a request was made to reschedule the hearing date from 17th May 2019 to 21st May 2019. With the agreement of the counsels involved, the Bench recalled the initial hearing date and renotified the matter for the new date. This procedural adjustment ensures proper scheduling and coordination for all parties involved in the legal proceedings, promoting efficiency and fairness in the adjudication process.
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