Order- In the matter of de-recognition of Insolvency Professional Entities

Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110001

F. No. IBBI/IPE/01/2019
17th January, 2019

ORDER

In the matter of de-recognition of Insolvency Professional Entities under regulation 14 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016

The Insolvency and Bankruptcy Board of India (Board) grants a certificate of recognition as an Insolvency Professional Entity (IPE) under sub-regulation (1) of regulation 13 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (Regulations), subject to the condition, inter-alia, that it shall at all times continue to satisfy the requirements under regulation 12 thereof.

2. The Regulations, as amended by the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018, inter alia, require that, an IPE recognised as on 1st April, 2018 shall comply with the provisions of clauses (a), (b), (c) and (d) of sub-regulation (1) of regulation 12 on or before 30th September, 2018 and the provisions of clauses (e), (f) and (g) on or before 30th June, 2018. The said sub-regulation reads as under:

“12. (1) A company, a registered partnership firm or a limited liability partnership may be recognised as an insolvency professional entity, if –

(a) its sole objective is to provide support services to insolvency professionals, who are its partners or directors, as the case may be;

(b) it has a net worth of not less than one crore rupees;

(c) majority of its shares is held by insolvency professionals, who are its directors, in case it is a company;

(d) majority of capital contribution is made by insolvency professionals, who are its partners, in case it is a limited liability partnership firm or a registered partnership firm;

(e) majority of its partners or directors, as the case may be, are insolvency professionals;

(f) majority of its whole time directors are insolvency professionals, in case it is a company; and

(g) none of its partners or directors is a partner or a director of another insolvency professional entity:

……………………………………………………………………………………………………………

3. The Board, vide circular dated 5th April, 2018, advised every IPE recognised as on 1st April, 2018 to ensure compliance with the provisions of sub-regulation (1) of regulation 12 of the Regulations, under intimation to the Board, failing which it may be de-recognised in accordance with regulation 14 of the said Regulations.

4. Thereafter, vide e-mail(s) dated 5th October, 2018, the Board sought the status of compliance with the provisions of sub-regulation (1) of regulation 12 of the Regulations by 15th October, 2018 from the recognised IPEs. It informed, vide the said e-mail(s), that if an IPE failed to intimate the status of compliance by that date, it shall be presumed that the said IPE did not comply with the provisions of sub-regulation (1) of regulation 12 of the Regulations and shall be de-recognised forthwith in accordance with the aforesaid regulation 14.

5. In response to the above, ten IPEs sought extension of time to comply with the provisions of the regulation 12. Since the Regulations do not provide for relaxation or extension of time, their requests could not be considered, and they were informed accordingly vide e-mail(s) dated 6th November, 2018. Therefore, the Board hereby de-recognises ten IPEs, as listed in the following Table, in accordance with regulation 14 of the said Regulations with effect from 1st October, 2018 for non-compliances as stated therein:

Sl. No. Name of the IPE Recognition No. of the IPE Non-Compliance of Regulation 12(1)
1 AV Insolvency Professionals Private Limited IBBI/IPE/0011 12(1)(a), 12(1)(b) and 12(1)(g)
2 Apprise Insolvency Professionals LLP IBBI/IPE/0017 12(1)(a), 12(1)(b) and 12(1)(g)
3 Leverage Turnaround & Resolution Private Limited IBBI/IPE/0023 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g)
4 Ezylaws Insolvency Professionals Private Limited IBBI/IPE/0034 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g)
5 Majestic Resolution Professionals LLP IBBI/IPE/0035 12(1)(a), 12(1)(b), 12(1)(d) and 12(1)(g)
6 Kadmawala Insolvency Professional Private Limited IBBI/IPE/0047 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g)
7 AAL Insolvency Professional private Limited IBBI/IPE/0053 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g)
8 Aries Corporate Consultants LLP IBBI/IPE/0055 12(1)(a), 12(1)(b) and 12(1)(g)
9 Manrom Consult LLP IBBI/IPE/0065 12(1)(a), 12(1)(b), 12(1)(e) and 12(1)(g)
10 Mint Insolvency Professionals LLP IBBI/IPE/0074 12(1)(a), 12(1)(b), 12(1)(d), 12(1)(e) and 12(1)(g)

6. There was no response from two IPEs. The Board, vide letter(s) dated 6th November, 2018, informed them that they did not comply with the provisions of regulation 12 and they are liable to be de-recognised. There was no response from them to the said letters. Accordingly, the Board hereby de-recognises the two IPEs, as listed in the following Table, in accordance with Regulation 14 of the said Regulations with effect from 1st October, 2018 for non-compliances as stated therein:

Sl. No. Name of the IPE Recognition No. of the IPE Non-Compliance of Regulation 12(1)
1 Bolster Juris IBP Private Limited IBBI/IPE/0048 12(1)(a), 12(1)(b) and 12(1)(g)
2 Chartered Insolvency Resolution Professionals Private Limited IBBI/IPE/0044 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g)

7. One IPE, namely, Integro Insolvency Professionals Private Limited (formerly known as Integro Insolvency Professionals Services Private Limited), has confirmed its non-compliance vide e-mail dated 30th November, 2018. Therefore, the Board hereby de-recognises Integro Insolvency Professionals Private Limited (formerly known as Integro Insolvency Professionals Services Private Limited) bearing recognition number IBBI/IPE/0031, in accordance with Regulation 14 of the said Regulations with effect from 1st October, 2018 for non-compliances of Regulations 12(1)(a), 12(1)(b), 12(1)(c) and 12(1)(g) of the aforesaid Regulations.

8. Consequently, the thirteen IPEs listed in Para 5, 6 and 7 are hereby directed to forthwith:

(a) surrender their original certificates of recognition to the Board; and

(b) inform the concerned Registrar of Companies about their de-recognition.

9. Notwithstanding the de-recognition, the aforesaid IPEs shall be jointly and severally liable for all acts or omissions, if any, of its partners or directors as insolvency professionals committed during such partnership or directorship, in accordance with sub-regulation (3) of regulation 13 of the Regulations.

– Sd-

(Ritesh Kavdia)
Executive Director

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