Refusal to register as an Insolvency Professional based on past actions and conduct justified

Pooja Menghani Vs Insolvency And Bankruptcy Board of India & Anr (Delhi High Court)

Delhi High Court held that while judging as to whether a person is fit and proper to be appointed as an Insolvency Professional his past actions and conduct cannot be ignored. Accordingly, refusal to grant registration as an Insolvency Professional justified as petitioner found guilty of fraudulent practices violating market integrity.

Facts- The Petitioner is a banker by profession. It is stated that she applied for being a registered Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 (IBC) with the Respondent No.1 herein/Board. The application of the Petitioner has been rejected on the ground that she is not a fit and proper person to be appointed as an Insolvency Professional.

Accordingly, the Petitioner has approached this Court challenging the order dated 02.05.2022, passed by the Respondent No.1/Board rejecting the application of the Petitioner herein for registration as a Resolution Professional.

Conclusion- While judging as to whether a person is fit and proper to be appointed as an Insolvency Professional his past actions and conduct cannot be ignored and the fact that immediate past was clean does not give a clean chit to the person that his candidature will be considered.

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