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TMI Blog2021 (2) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... lation 7A was inserted in the IP Regulations vide notification dated 23rd July 2019 - The bye-laws of Indian Institute of Insolvency Professionals of ICAI 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 by the IPs to the IPA under para 12A of said bye-laws. An IP who is more than seventy years of age is ineligible to make an application for AFA under para 12A (2)(e) of the said bye-laws. In the present matter it is observed that, Mr. Sivakumar was appointed as Liquidator of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conferred under Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, disposes of the SCN without any direction - SCN disposed off. - NO. IBBI/DC/61/2020 - - - Dated:- 17-12-2020 - Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI ORDER In the matter of Mr. Venkata Sivakumar, 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/2020/2 dated 28th August, 2020 issued to Mr. Venkata Sivakumar, No. 10/11, Dr. Subbarayan Nagar Main Road, Kodambakkam, Chennai, Tamil Nadu-600024 who 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 ..... llows. (i) Mr. Sivakumar was the Resolution Professional (RP) in the CIRP of the CD and was appointed as the Liquidator by the Hon'ble National Company Law Tribunal, Chennai Bench (AA) vide order dated 29th May, 2020. (ii) The provisions of AFA do not apply to this present matter since no new assignment was taken up by Mr. Sivakumar. He continued with the same assignment wherein he was the RP and now has been appointed as the Liquidator. Therefore, the provisions of Regulation 7A of the IP Regulations are not applicable. (iii) Mr. Sivakumar applied for AFA before the IPA, however, the same has been rejected. Analysis and Findings 4. The DC after taking into consideration the SCN, the reply to SCN of Mr. Sivakumar and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regulation. An application for grant of AFA can be made by the IPs to the IPA under para 12A of said bye-laws. An IP who is more than seventy years of age is ineligible to make an application for AFA under para 12A (2)(e) of the said bye-laws. 4.4 Further, Section 208 of the Code also casts an obligation to abide by the code of conduct and comply with all requirements and terms and conditions specified in the byelaws of the insolvency professional agency of which he is a member. Section 208(2) provides as follows: 208. Functions and obligations of insolvency professionals.- (2) Every insolvency professional shall abide by the following code of conduct: - (a) to take reasonable care and diligence while performing his duties; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... integrity and professional competence for rendering professional service, representation of correct facts and correcting misapprehension, not to conceal material information and not to act with malafide or with negligence. 5. In the present matter it is observed that, Mr. Sivakumar was appointed as Liquidator of the CD vide order of the AA dated 29th May, 2020. The date of Public Announcement of the Liquidation is 29th May, 2020. The notification published on 23rd July, 2019, inter alia, amended the IP Regulations and holding of AFA has been made one of the essentials for conducting various processes under the Code, to be effective from 1st January, 2020. Thus, adequate time was given to the Insolvency Professionals to obtain AFA. The DC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. In the circumstances, V. Venkata Sivakumar, having Reg No IBBI/IPA-001/IP-P00184/2017-18/10852 is appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process subject to the following terms of the directions. (a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant Rules and regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended upto date enjoined upon him. (b) The Liquidator shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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