Keyur Jagdishbhai Shah Vs Insolvency And Bankruptcy Board of India (Gujarat High Court)
Insolvency and Bankruptcy Board of India (IBBI) penalized Insolvency professional Keyur Shah by suspending the license for 2 years.
IBBI order stated that though the RP had not taken due care in getting the land revenue records updated of the insolvent company during the insolvency process. The insolvent company had been converted from partnership firm.
The Resolution professional had submitted that the resolution plan of the company was approved by financial creditors committee after taking cognizance of the issue of name change not effected by the suspended promoters of the company. However, NCLT rejected the resolution plan and also changed the RP treating name change inaction as serious issue. Mr. Shah did not appeal against the NCLT order and hence IBBI took cognizance of the order and treated this irregularity as misconduct.
Pointing out various issues in the adjudication of the IBBI Disciplinary Committee order with regard to limitation, ministerial irregularity and neutral role of RP.
One of the major issue with regard to investigation pointed out was presence of the investigation head as member of Disciplinary Committee which goes against the basic principles of justice that prosecutor cannot be adjudicator in the same case.
