Study Circle Meeting of All India insolvency professional Association at Chennai

 Study Circle Meeting of All India insolvency professional Association at Chennai

Dr. Rajkumar Adukia

Yesterday (28 May 2018) , there was a study circle meeting was organised by All India insolvency professional Association at Chennai. Dr. Rajkumar Adukia , Mumbai , Vice President All India insolvency professional Association addressed the gathering on  issues related to IBC and also how to pass registered Valuers examination.

Release of Book

It is brain storming session and Dr.Rajkumar Adukia also released his book titled “ Practical Guide for Valuation including Legal Framework in India.”

Issues Faced by IRPs

Insolvency Professionals who attended the meeting exchanged their views are follows:

1.      Most of the major insolvency cases are handled by Big Fours and their IRPs are paid hefty amount as their charges. Whereas banks are offering to other IRPs just Rs 50,000/= per assignment which is too low. When IRPs opposed for this low fee, banks are informing them that their concurrent auditors who are working for Rs 6500/= per month.

2.      Insolvency Professionals alleged that there is no cooperation from corporate debtors who are facing CIRP. This is the case when non-cooperation is reported to NCLT and even after NCLTs order for cooperation by corporate debtor, they are not getting cooperation at all.

3.      Frivolous FIRs and criminal cases filed against IRPs to delay the CIRP process.

4.      Dubious methods are employed to have huge haircuts from banks by asking friends or relatives to submit resolution plans.

5.      NCLT should fix adequate and reasonable remuneration for IRPs as it is IRP who will be doing a lot of ground work for CIRP.

The session was interactive and was very useful.