Disciplinary action against a Resolution Professional (RP) for ...

RP suspended for IBC violations, negligence in claim verification & Resolution Plan approval.

Case Laws IBC

October 18, 2024

Disciplinary action against a Resolution Professional (RP) for contravention of provisions of the Insolvency and Bankruptcy Code (IBC) and lack of due diligence. RP failed to verify the Resolution Plan, intimate claims, and address specific queries, violating Sections 30(2)(b) and (e), 208(2)(a) and (e) of IBC. RP did not object to the proposal by the Successful Resolution Applicant (SRA) which included comments and legal analysis terming an arbitration award in favor of a claimant as void. Despite legal opinion advising against such comments, RP failed to take cognizance. RP's inaction on indicating precise admitted claim amount violated Regulations 13(2)(a) and (d). The Disciplinary Committee found sufficient basis for issuing show cause notice and suspending RP's registration for one year based on NCLAT's observations of RP's failure in duty. Suspension period within Disciplinary Committee's jurisdiction u/s 220 of IBC. No interference warranted in writ jurisdiction. Writ Petition dismissed.

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Disciplinary action against a Resolution Professional (RP) for ...

RP suspended for IBC violations, negligence in claim verification & Resolution Plan approval.

Case Laws IBC

October 18, 2024

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