Case Note & Summary
The appeal was filed by Mr. Deepak Kumar Goyal, a registered Insolvency Resolution Professional, against the order of the Insolvency and Bankruptcy Board of India (IBBI) which cancelled his registration due to alleged contraventions of the Insolvency and Bankruptcy Code, 2016. The Appellant was appointed as the Authorized Representative for homebuyers in the Corporate Insolvency Resolution Process (CIRP) of M/s. Revital Realty Private Limited, representing approximately 1,428 homebuyers. The IBBI alleged that the Appellant failed to maintain proper records of meetings as required under Regulation 16A(10) and did not obtain prior instructions from creditors before agreeing to an extension of time for submission of revised resolution plans, violating Section 25A(3). The Appellant contended that he had adequately communicated concerns raised by homebuyers and that the absence of formal minutes did not equate to a failure in representation. The IBBI maintained that proper documentation was essential for accountability and transparency, especially given the large number of creditors represented. The Tribunal noted that the Appellant's conduct was scrutinized in light of his statutory obligations and the importance of maintaining proper records. Ultimately, the Tribunal upheld the IBBI's decision, emphasizing that the Appellant's lapses justified the cancellation of his registration due to the serious implications for the insolvency process and the stakeholders involved.
Headnote
A) Insolvency Law - Professional Conduct - Cancellation of Registration - Insolvency and Bankruptcy Code, 2016, Section 25A(3) - The Appellant was found to have failed in maintaining proper records of meetings with creditors and in obtaining prior instructions before concurring to an extension of time for submission of revised plans. The Tribunal held that such lapses warranted cancellation of registration due to the significant responsibilities attached to the role of an Authorized Representative (Paras 71-72).
Issue of Consideration
Whether the Appellant contravened the provisions of Regulation 16A(10) and Section 25A(3) of the Insolvency and Bankruptcy Code, 2016, justifying the cancellation of his registration as an Insolvency Professional.
Final Decision
The Tribunal upheld the cancellation of the Appellant's registration, finding that the Appellant had indeed contravened the provisions of Regulation 16A(10) and Section 25A(3) of the Insolvency and Bankruptcy Code, 2016. The Tribunal emphasized the importance of maintaining proper records and obtaining necessary instructions in the context of representing a large class of creditors.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- Regulation 16A(10)
- Section 25A(3)
- disciplinary proceedings
- professional conduct
- statutory obligations
