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TMI Blog2021 (2) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 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 Indian Institute of Insolvency Professionals of ICAI defines in para 4(1)(aa) the expression authorisation for assignment means 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. 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 con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RDER In the matter of Mr. Romesh Chander Sawhney, 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/2020/3 dated 27th August, 2020 issued to Mr. Romesh Chander Sawhney, 850/GH-13, Paschim Vihar, New Delhi-110087 who is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI (IPA) and an IP registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-001/IP-P00274/2017-2018/10518. 1.1 The IBBI had issued on 27th August, 2020, the SCN to Mr. Romesh Chander Sawhney for accepting the assignment as the Interim Resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) he had submitted his expression of interest in the MLP Developers Promoters Private Limited on 5th April 2019 when the matter was filed before the Hon'ble NCLT, Chandigarh Bench in the month of April 2019 prior to the amendment of regulation 7A to the IP Regulations. (ii) he submits that he is a senior citizen aged about 63 years and could not attend office due to sudden health problem in the month of December 2019. As he did not have any assignment in hand on 1st January 2020 and his office staff could not interpret regulation 7A of the IP Regulations and thought it was not applicable to them. (iii) it was an unintentional procedural lapse without any ill motive, resulting from oversight of the newly incorporated provisions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signment 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 assignment 4.2 Thus, it is clear from the said Regulation that one of the essential conditions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow 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 be subject to the conditions that the insolvency professional shall - (a) at all times abide by the Code, rules, regulations, and guidelines thereunder and the bye-laws of the insolvency professional agency with which he is enrolled; (h) abide by the Code of Conduct specified in the First Schedule to these Regulations; 4.6 The credibility of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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