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TMI Blog2021 (2) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... ification 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 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A in the matter of M/s. Bansal Refineries (P.) Ltd., 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. Pinaki Sircar. SCN disposed off. - No. IBBI/DC/49/2020 - - - Dated:- 4-12-2020 - Dr. Mukulita Vijayawargiya, WHOLE TIME MEMBER, IBBI ORDER In the matter of Mr. Pinaki Sircar, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016 This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/MON/2020/25 dated 28th August, 2020 issued to Mr. Pinaki Sircar, 31/7, N.C. Chowdhury Road, Kolkata, West Bengal-700042, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assignment as the liquidator in Liquidation process of M/s. Bansal Refineries (P.) Ltd. after 31st December, 2019 for which public announcement was made on 21st January, 2020 without holding a valid AFA from the IPA. Written and oral submissions by Mr. Pinaki Sircar 3. Mr. Sircar's submissions made in his written reply and during the course of personal hearing are summarized as follows. 3.1 Mr. Sircar in his reply submitted that- (i) he was under the absolute bona fide belied and impression that he had duly submitted the application for AFA prior to the last date of 31st December, 2019. (ii) the actual non-submission of the AFA had happened due to a bona fide error in understanding the technical process of complete su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows. 4.1 The DC notes that the provisions of the Code and regulations are spelt out in a plain and unambiguous language. Regulation 7A of IP regulations requires for any IP to have AFA before undertaking any assignment after 31st December 2019. Regulation 7A reads as follows: 7A. An insolvency professional shall not accept or undertake an assignment after 31st December, 2019 unless he holds a valid authorisation for assignment on the date of such acceptance or commencement of such assignment, as the case may be: Provided that provisions of this regulation shall not apply to an assignment which an insolvency professional is undertaking as on- (a) 31st December, 2019; or (b) the date of expiry of his authorisation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equirements and terms and conditions specified in the byelaws of the insolvency professional agency of which he is a member; and (e) to perform his functions in such manner and subject to such conditions as may be specified. 4.5 The DC further notes that the certificate of registration granted to an IP is subject to the condition that he should follow at all times the provisions of the Code and Regulations and the bye-laws of Insolvency Professional Agency of which the IP is a member and also follow the Code of Conduct specified in the First Schedule to the IP Regulations. In this regard, clauses (a) and (h) of regulation 7(2) of the IP Regulations provide as follows: 7. Certificate of registration. (2) The registration shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 2019. The DC notes that Mr. Sircar did not hold a valid AFA either on the date of consent to act as liquidator i.e. 2nd January, 2020 or on the date of passing of liquidation order i.e. 17th January, 2020. This is in violation of the provisions of regulation 7A of the IP Regulations. 4.8 Mr. Sircar has submitted that he submitted the application for AFA on 14th December, 2019, followed the steps 1 to 6 of the Step by Step Guide-AFA, but he did not follow all the steps i.e. 10 steps. As per his submission, he was under bona fide belief that the AFA had been duly submitted after following steps 1 to 6 and would be processed in due course in accordance with and under the aegis of IBBI and the IPA. However, the DC notes that the Step by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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