IBBI bars RP from taking an assignment for 1 year as he violated Sec. 208(2)(a) and Regulation 36A of CIRP regulations

Case details: Manish Kumar Gupta, In re - [2021] 129 taxmann.com 364 (IBBI)

Judiciary and Counsel Details

• • Dr. Mukulita Vijayawargiya, Member

Facts of the Case

In the instant case, Mr. Manish Kumar Gupta (hereinafter referred to as ‘M’) was appointed as an Interim Resolution Professional (IRP) for Corporate Insolvency Resolution Process (CIRP) in a matter of corporate debtor.

The Insolvency Bankruptcy Board of India (IBBI) issued a show-cause notice to ‘M’ based on findings in the inspection report in respect of his role as an IRP/RP in CIRP of corporate debtor and material available on record alleging contraventions of provisions of section 208 and regulation 7 of IBBI (Insolvency Professionals) Regulations, 2016.

IBBI Held

The Disciplinary Committee of IBBI found that ‘M’ by the inclusion of expression of interest after the last date had contravened regulation 36A of CIRP Regulations, regulation 7(2)(h) of IP Regulations, and clauses 13 and 14 of Code of Conduct. It was also found that ‘M’ had contravened section 208(2)(a) and did not take reasonable care and exercised diligence while making disclosures as per Circular No. IP/005/2018, dated 16-1-2018.

Consequently, the Disciplinary Committee of IBBI was justified in directing that ‘M’ would not seek or accept any process or assignment or render any services under Code for a period of twelve months.

List of Cases Referred to

• • Shiv Dayal Sharma v. Three C Projects (P.) Ltd. [CP (IB)-1718(PB) of 2018, dated 28-8-2019] (para 1.1)
  • Reliance Energy Ltd. v. Maharashtra State Road Development Corpn. Ltd. [2008] 85 SCL 320 (SC) (para 7.14).