The court upheld the validity of Clause 23A of the Insolvency ...

Regulatory Suspension of Insolvency Agents During Disciplinary Proceedings Upheld.

Case Laws Insolvency and Bankruptcy

August 27, 2024

The court upheld the validity of Clause 23A of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, and the corresponding clause in the bye-laws of the ICSI Institute of Insolvency Professionals. Clause 23A provides for suspension of an Authorized Facilitation Agent (AFA) upon initiation of disciplinary proceedings by the agency or IBBI. The issuance of a show cause notice amounts to initiation of disciplinary proceedings. The regulations were framed under the statutory powers conferred by the Insolvency and Bankruptcy Code, and the show cause notices issued were preceded by authorized investigations. The suspension of the petitioner's AFA was legal as a consequence of initiating disciplinary proceedings against them, as provided by Clause 23A. The court found no jurisdictional infirmity in the show cause notices.

View Source

← Previous Next →

The court upheld the validity of Clause 23A of the Insolvency ...

Regulatory Suspension of Insolvency Agents During Disciplinary Proceedings Upheld.

Case Laws Insolvency and Bankruptcy

August 27, 2024

You may also like:

HC addressed dishonour of cheque with borrower in insolvency proceedings under IBC, 2016. SC clarified insolvency proceedings don't automatically extinguish criminal...

Disciplinary Proceedings - Discloser of Relationship of the insolvency professional with various entities - Insolvency and Bankruptcy Board of India (Insolvency...

The High Court suspended petitioners from service for allegedly accepting illegal gratification. The suspension orders were stayed by the Court twice. As more than eight...

GST officer's suspension upheld based on allegations of issuing registration without proper verification. Registration issued to Prabhat Singh without verifying field...

Constitutional validity - Disciplinary proceedings against insolvency professional agencies - suspension of authorization for assignment - Regulation 23A is liable to be...

Default by insolvency professional (IP) - Disciplinary Committee debars her from seeking fresh registration as an insolvency professional or providing any service under...

CIRP Proceedings against the Personal Guarantors - the ‘Adjudicating Authority’ / ‘Tribunal’, has ‘jurisdiction’, to ‘entertain’/’initiate’, the ‘Insolvency Proceedings’...

Disciplinary proceedings - allegation of misconduct - Proceedings against ex-Superintendent of Central Excise - Reliance on confessional statements made by accused...

Professional Misconduct - Disciplinary against the CA - In the present case the disciplinary committee has passed the order only on the basis of preponderance of...

Once symbolic possession of the property is taken over by the appellant under the SARFAESI Act, 2002, the moratorium u/s 96 of the Insolvency and Bankruptcy Code...

Disciplinary Action against the Resolution Professional (RP) - Incorporation of partnership firm by the name ‘IBBI Insolvency Practitioners LLP’ - issuance of SCN on the...

RTI application - The request of the appellant to disclose the list of insolvency professionals against whom disciplinary proceeding is under process cannot be accepted

Misconduct insolvency professional - misleading the stakeholders of the insolvency and bankruptcy - Disciplinary Committee has taken the action against the professional.

Interpretation of Section 220 of the Insolvency and Bankruptcy Code (IBC) regarding the constitution of the Disciplinary Committee. The key points are: The Disciplinary...

Allegation of Misconduct against the petitioner acting as Commissioner of Income Tax (Appeals) / CIT(A) - officials exercising quasi-judicial functions - exemption from...

Quick Updates: