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TMI Blog2021 (3) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... ear from Regulation 7A of IP regulations 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2019, however, notification for the same was notified on 23rd July, 2019. Mr. Juneja should have applied for AFA especially in view of ratification of his name to act as RP by the CoC. The DC finds that an order has been passed against Mr. Juneja 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. Juneja is guilty of professional misconduct and a penalty of ₹ 10,000/- has been imposed. - No. IBBI/DC/66/2021 - - - Dated:- 11-1-2021 - Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI ORDER In the matter of Mr. Girish Siriram Juneja, Insolvency Professional (IP) under Regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions 7(2)(a), 7(2)(h) and 7A of the IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations) read with clauses 1, 2, 11, 12 and 14 of the Code of Conduct for Insolvency Professionals contained in the First Schedule of the IP Regulations for accepting the assignment as the RP in CIRP of the CD after 31st December, 2019 without holding a valid AFA from the IPA. Written and oral submissions by Mr. Girish Siriram Juneja. 3.Mr. Juneja's submissions made in his written reply and during the course of personal hearing are summarized as follows: (i) Mr. Juneja submitted that his name was proposed as the Interim Resolution Professional (IRP) for the CD in March, 2019 by the Oriental Bank of Commerce and the acceptance for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lvency 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 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 as a professional member. In other words, without AFA, an IP is not eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name to act as RP by the CoC. 4.8 The DC finds that an order has been passed against Mr. Juneja 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. Juneja 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 or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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