MISLEADING THE CREDITORS , OUTSOURCING THE RESPONSIBILITY OF AN INSOLVENCY PROFESSIONAL MAKES THE IBBI TO DEBAR A CHARTERED ACCOUNTANT TO FUNCTION AS AN INSOLVENCY PROFESSIONAL

MISLEADING THE CREDITORS , OUTSOURCING THE RESPONSIBILITY OF AN INSOLVENCY PROFESSIONAL MAKES THE IBBI TO DEBAR A CHARTERED ACCOUNTANT TO FUNCTION AS AN INSOLVENCY PROFESSIONAL

INSPECTING AUTHORITY FINDINGS

The disciplinary committee of the Insolvency and Bankruptcy Board of India (IBBI), on last week, passed an interim order debarring a Chartered Accountant from practicing as an Insolvency Professional. The Board, in January, appointed the Inspecting Authority to conduct an inspection of Mr. Mukesh Mohan, Insolvency Professional on suspicion of violation of the provisions of the Insolvency and Bankruptcy Code.

FAILURE TO QUOTE REGISTRATION NUMBER , EMAIL ID IN CORRESPONDENCE BY IRP

One of the major allegation made against the Chartered Accountant, Mr. Mohan was that at the time of issuing the Certificate of Registration an Insolvency Professional, the Board had directed him to quote Registration Number, email id, and address registered with the Board in all his future correspondences with various agencies relating to insolvency professional related work. However, he failed to comply with these directions in the advertisement inviting EoI.

SEEKING BOARD OF DIRECTORS APPROVAL AFTER INITIATION OF CIRP

In another matter, of Athena Demwe Power Limited, Mr. Mohan wanted approval of EoI from the Board before its issue though there is no such provision in the Code. Thus, he tried to push the EoI to the Board for approval.

MISLEADING THE COC , AA and BOARD OF DIRECTORS

 The authority, after investigation, found that Mr. Mohan has attempted to mislead the CoC, the AA, and the Board, outsourced his responsibilities to a third person, acted beyond his authority without the approval of the CoC, acted for and on behalf of one of the creditors, and thereby contravened provisions in sections 21(8), 23(1), 25(2)(h), 30(2)I, 70 (2), 235A of the Code and regulation 7 (2) (i) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulation, 2016 and clauses 1, 2, 3, 5, 9, 12, 13 and 14 of the Code of Conduct under First schedule of these regulations.

DEBARING DECISION

On the above charges, the disciplinary committee upheld its interim order debarring Mr. Mukesh from undertaking any new assignment, either as an Interim Resolution Professional, Resolution Professional, Liquidator or otherwise, under the Code.

A copy of the order was later forwarded to the Indian Institute of Insolvency Professional of ICAI where Mr. Mukesh Mohan is enrolled as its member.

Courtesy: TAX SCAN