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TMI Blog2019 (1) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... 17-18/10365. Mr. Agarwal replied to the SCN vide his letter dated 16th August, 2018. The Board referred the SCN, response of Mr. Agarwal to the SCN and other material available on record to the Disciplinary Committee (DC) for disposal. Mr. Agarwal, appeared for a personal hearing on 5th October, 2018 and requested to be represented by an Advocate and sought adjournment, which was allowed. He along with the learned Advocate, Mr. Alok Dhir, accordingly appeared before the DC on the 23rd October 2018 and made oral submission. 2. The DC has carefully considered the oral and written submissions of Mr. Agarwal and material available on record. 3. The undisputed facts leading to issue of SCN is as under: 3.1 Based on an application filed by an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CD. 3.5 The CoC met on 19th February, 2018, where the sole creditor was present and decided not to seek any extension of time for the CIRP beyond 27th February, 2018. 3.6 A director of the CD, who was present at the meeting of the CoC on 19th February, 2018, informed that the registered office of the CD had been shifted to another location and assured to provide certain documents relating to the CD to Mr. Agarwal. Accordingly, the CD, vide letter dated 19th February, 2018, provided the documents to Mr. Agarwal. 3.7 Mr. Agarwal filed the second progress report dated 22nd February, 2018 expressing his inability to continue resolution process for want of co-operation from the CD and decision of the CoC not to seek extension of the CIRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RP period was ending on 27th February, 2018. He issued a notice only 31st January, 2018 convening the third meeting of the CoC to be held on 12th February, 2018. He ought to have convened the meeting earlier and he should have done so with seven days' notice, which is the requirement under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations). Further, he should have adjourned the meeting to the next day (13th February, 2018), as required under the CIRP Regulations, if no one turns up for the meeting, instead of adjourning the meeting to 19th February, 2018. Submission: The sole member in the CoC requested the RP to hold the meeting after 10th February, 2018 due to his unavailability. He also w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statute anticipates that a RP may not always get co-operation and, therefore, entitles him in such situations to make an application under section 19(2) of the Code seeking a direction from the AA. Mr. Agarwal neither took over the management of the CD nor did he apply for direction of the AA. He merely informed the AA, through the progress report, at the fag-end of the CIRP period that he was not getting co-operation of the CD. It is a lame excuse that Mr. Agarwal could not trace the CD when there was an IRP for about 140 days, two meetings of the CoC were held, a director of the CD attended the meeting of the CoC convened by Mr. Agarwal, and the said director informed Mr. Agarwal about change of address of the CD. It is preposterous that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to avoid or to run away from the responsibility, there is no prohibition on seeking recuse with the approval of the AA. It may be difficult to find fault with Mr. Agarwal in this regard. 5.1 An IP is not just another professional. He is dealing with a CD in distress. In this matter, the DC observes that Mr. Agarwal displayed a laid-back attitude, gave up even before trying and practically abandoned the CIRP. During his term as RP, he did not do anything, which an RP is required to do, except having one meeting of the CoC and submitting two progress reports and, therefore, contravened provisions of sections 20 and 23 of the Code. 5.2. Mr. Agarwal was appointed as IRP after about 140 days of the commencement of the CIRP, when everything wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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