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TMI Blog2021 (3) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... clear 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 as a professional member. 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 Indian Institute of Insolvency Professional 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the powers conferred under Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, disposes of the SCN without any direction. - No. IBBI/DC/65/2021 - - - Dated:- 11-1-2021 - Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI ORDER In the matter of Mr. U. Balakrishna Bhat, 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/2020/13 dated 28th August, 2020 issued to Mr. U. Balakrishna Bhat, A005, Western Edge II, Off Western Express Highway, Behind Metro Cash and Carry, Borivali (E), Mumbai City, Maharashtra - 400066, who is a Professional Member of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d AFA from the IPA. Written and oral submissions by Mr. U. Balakrishna Bhat. 3. Mr. Bhat's submissions made in his written reply and during the course of personal hearing are summarized as follows. (i) Mr. Bhat submitted that the acceptance to act as the IRP in the present assignment was given by him on 5th June, 2018 by signing consent in Form 2, i.e., before 31st December, 2019, the date on which the said Regulation 7A of the IP Regulations came into force. He further submitted that the Hon'ble NCLT, Amravati admitted the application for initiation of CIRP of the CD vide order dated 20th December, 2019 and appointed him as the IRP. He was later confirmed as RP in the first CoC meeting held on 17th January, 2020. Thus, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 as a professional member. 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. 4.3 The bye laws of Indian Institute of Insolvency Professional 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed against Mr. Bhat on 1st December, 2020 by the Disciplinary Committee of IPA for accepting assignment as RP after 31st December, 2019 without holding a valid AFA in the CIRP of the CD and it has been decided that Mr. Bhat is guilty of Professional Misconduct and a penalty of ₹ 10,000/- has been imposed. Order 5. In view of the fact that the Disciplinary Committee of the Indian Institute of Insolvency Professional of ICAI has already passed order in this matter, 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. 5.1 A copy of this order shall be forwarded to the Indian Institute of Insolvency Professional of ICA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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