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A. S. CHANDURKAR, RAJESH S. PATIL
Vijendra Kumar Jain, The erstwhile Resolution Professional of M/s. Transparent Energy System Pvt. Ltd. – Appellant
Versus
Insolvency & Bankruptcy Board of India, Through Deputy General Manager – Respondent
JUDGMENT :
(A.S. Chandurkar, J.)
1. Rule. Rule made returnable forthwith and heard learned counsel for the parties.
2. Pursuant to initiation of Corporate Insolvency Resolution Process – “CIRP” of M/s. Transparent Energy System Private Limited – Corporate Debtor – “CD”, the petitioner came to be appointed as Resolution Professional – “RP” by the National Company Law Tribunal - “NCLT” by its order dated 21st February 2020. The Insolvency and Bankruptcy Board of India – “IBBI” , in exercise of powers conferred under Section 218 of the Insolvency and Bankruptcy Code, 2016 - “the Code”, appointed an Investigating Authority - “IA” to conduct investigation in the matter of the CD. After receipt of the Investigation Report, the IBBI on 11th July 2023 issued a show cause notice to the petitioner raising two grounds, namely, lack of due diligence while verifying the Resolution Plan of the CD and non-intimation of the claim of Kanoria Chemicals & Industries Limited – “KCIL” despite being aware of the partial admission of its claim. It was stated in the show cause notice that the IA had issued a notice of investigation to the petitioner on 29th April 2023 seeking his response. The petitioner thr
The court upheld the suspension of a Resolution Professional for one year due to lack of due diligence and failure to communicate claims, affirming the Disciplinary Committee's authority under the In....
The court emphasized that disciplinary penalties must be proportionate to the misconduct and factors such as prior penalties and delays in proceedings must be considered.
The court affirmed that the IBBI's issuance of show cause notices and the suspension of the Authorization for Assignment were valid under the Insolvency and Bankruptcy Code, 2016 and its regulations.
The court affirmed the authority of the Committee of Creditors to appoint a Resolution Professional, stating that dual roles do not inherently present a conflict of interest without substantial evide....
The Tribunal found no conflict of interest in the concurrent appointment of a Resolution Professional for related corporate debtors, affirming the Committee of Creditors' decision to retain the RP ba....
Resolution Professionals must ensure strict compliance with the Insolvency and Bankruptcy Code, as failure to do so justifies suspension of their registration.
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