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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 ..... m as IRP and as RP in the CIRP of Upadan Commodities Private Ltd. and directs him to deposit the penalty amount by a crossed demand draft payable in favour of the Insolvency and Bankruptcy Board of India within 30 days of the issue of this order - The Board in turn shall deposit the penalty amount in the Consolidated Fund of India - SCN disposed off. - No. IBBI/DC/ 13/2018 - - - Dated:- 7-1-2019 - Dr. M. S. Sahoo, Chairperson, IBBI And Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI Order This order disposes of the show cause notice dated 28th July, 2018 (SCN) issued to Mr. Vasudeo Agarwal, 5 Fancy Lane, 3rd Floor, Kolkata-700001. Mr. Agarwal is a professional member of the Indian Institute of Insolvency Professionals o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as IRP vide order dated 16th January, 2018. He filed his consent on 18th January, 2018 to accept the appointment as IRP of the CIRP. 3.2 The committee of creditors (CoC) comprised the sole operational creditor, namely, Mr. Arun Kumar Jain. 3.3 Mr. Agarwal sent a letter dated 31st January, 2018 to the CD informing that he had been appointed as the IRP and seeking certain records. He issued a notice dated 31st January, 2018 convening the third meeting of the CoC on 12th February, 2018. He filed the first progress report on 1st February, 2018 with the AA informing the aforesaid letter and notice. 3.3 The meeting of the CoC did not take place as the sole creditor was absent. The sole creditor, vide his letter dated 15th February, 2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A, vide order dated 26th April, 2018, appointed Mr. Subodh Kumar Agarwal as the Liquidator. As Mr. Subodh Kumar Agarwal expressed difficulty to take up the responsibility in view of his existing workload, the AA, vide order dated 14th May, 2018, appointed Mrs. Savita Agarwal as the Liquidator. Ms. Savita Agarwal also expressed inability to take up the assignment. However, the AA, vide order dated 17th July, 2018, discharged Mr. Vasudeo Agarwal, after taking note of the progress report dated 17th July, 2018. 3.12 The Board took note of the observations of the AA in its order dated 1st March, 2018 and sought comments thereon of Mr. Agarwal. After following the due process, it issued the SCN. 4. A summary of contraventions alleged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racked the process, it can t hold him liable for the same in contravention of any specific regulation. The DC notes that even if Mr. Agarwal had complied with the regulations by adjourning the meeting to the next day, it would have been an exercise in futility and would not have made any difference to the process. 4.2 Contravention: Mr. Agarwal did not take over the management of operations of the CD in contravention of the provisions of section 23 of the Code. The excuse that he faced non-cooperation from the CD is not tenable as he did not even seek help of the AA under section 19(2) of the Code. Submission: Mr. Agarwal has, vide its progress report dated 22nd February, 2018, informed the AA about the non-cooperation of the CD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. Submission: Mr. Agarwal has generally denied these allegations and stated his difficulties to explain his failure to conduct the CIRP. Finding: An RP exercises the powers of the Board of Directors of a CD in distress and conducts the CIRP. Obviously, the job is tough and challenging. Every other IP encounters difficulties similar to those faced by Mr. Agarwal. An IP is known for his ability to deal with challenges, not for his ability to explain the failure. Mr. Agarwal did not make serious effort to get any of the tasks done. 4.4 Contravention: Mr. Agarwal recused himself from being appointed as the Liquidator without any cogent reasons for the same. Submission : He continued to perform duties of the Liquidator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -regulations (7) and (8) of regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, hereby imposes on Mr. Agarwal a monetary penalty equal to one hundred percent of the total fee payable to him as IRP and as RP in the CIRP of Upadan Commodities Private Ltd. and directs him to deposit the penalty amount by a crossed demand draft payable in favour of the Insolvency and Bankruptcy Board of India within 30 days of the issue of this order. The Board in turn shall deposit the penalty amount in the Consolidated Fund of India. Accordingly, the show cause notice is disposed of. 6.2 This Order shall come into force on expiry of 30 days from the date of its issue. 6 . 3 A copy of this order sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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