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TMI Blog2020 (9) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... tions for undertaking any assignment by an IP is that he should have a valid AFA which is issued by the IPA with which he is enrolled. In other words, without AFA, an IP is not eligible to undertake assignments or conduct various processes thereof. Regulation 7A was inserted in the IP Regulations vide notification dated 23rd July 2019, much before 31st December, 2019. Adequate time was given to the professionals to obtain AFA from respective IPAs. The bye laws of ICSI Institute of Insolvency Professionals defines in para 4(1)(aa) the expression authorisation for assignment as an authorisation to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who is its professional member, in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prises Private Limited, the DC, in exercise of the powers conferred under Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, disposes of the SCN without any direction against Mr. Ravi Sharma - A copy of this order shall be forwarded to the ICSI Institute of Insolvency Professionals where Mr. Ravi Sharma is enrolled as a member. - IBBI/DC/29/2020 - - - Dated:- 11-9-2020 - Dr. Mukulita Vijayawargiya Member ORDER This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/MON/2020/17 dated 28th August, 2020 issued to Mr. Ravi Sharma, 2E/207, 2nd Floor, Caxton House, Jhandewalan Extension, New Delhi 10055, who is a Professional Member of the ICSI Institute of Insolvency Professionals (IPA) and an IP regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises Private Limited after 31st December 2019 for which public announcement was made on 2nd July 2020 without holding a valid AFA from the IPA. Written and oral submissions by Mr. Ravi Sharma 3. Mr. Sharma s submissions made in his written reply and in the course of personal hearing are summarized as follows. 3.1 Mr. Sharma in his reply admitted the occurrence of mistake/ non-compliance. He submitted that- (i) the error has occurred inadvertently an unintentionally resulting from oversight of the newly incorporated provisions; (ii) he was under bonafide belief that AFA is required in cases of appointment which are made vide order of the AA and not in voluntary liquidation process; (iii) IPA has also issued the show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or conduct various processes thereof. Regulation 7A was inserted in the IP Regulations vide notification dated 23rd July 2019, much before 31st December, 2019. Adequate time was given to the professionals to obtain AFA from respective IPAs. 4.3 The bye laws of ICSI Institute of Insolvency Professionals defines in para 4(1)(aa) the expression authorisation for assignment as an authorisation to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who is its professional member, in accordance with its bye-laws regulation. An application for grant of AFA can be made to the IPA under para 12A of said bye laws. 4.4 Further, Section 208 of the Code also casts an obligation to abide by the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the First Schedule to these Regulations; 4.6 The credibility of the processes under the Code depends upon the observance of the Code of conduct by the IRP/RP during the process. Section 208(2) of the Code provides that every IP shall take reasonable care and diligence while performing his duties and to perform his functions in such manner and subject to such conditions as may be specified. Further, the Code of Conduct specified in the First Schedule of the IP regulations enumerates a list of code of conduct for insolvency professionals including maintaining of integrity and professional competence for rendering professional service, representation of correct facts and correcting misapprehension, not to conceal material information and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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