The Insolvency and Bankruptcy Board of India (IBBI) barred insolvency professional (IP) from taking fresh assignments or rendering services for three months.
Mr. Rajneesh Singhvi is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI and an Insolvency professional registered with the Insolvency and Bankruptcy Board of India (Board).
The Disciplinary Board on 21st May 2020 had issued the SCN (show-cause notice) to Mr. Rajneesh Singhvi, based on material available on record in respect of his role as an interim resolution professional (IRP) and/or resolution professional (RP) in appointing unregistered valuer Mr Abhishek Ahuja in the corporate insolvency resolution process (CIRP) of M/s Arjun Ispat India Private Limited.
The committee noted that Mr Singhvi failed to appoint registered valuer by the 47th day of the insolvency commencement. It was the duty of Mr Singhvi to confirm the credentials of said valuer before his appointment and admittedly, the said valuer was not a registered valuer on the date of his appointment.
The DC also notes that Mr. Singhvi, while keeping in mind the requirement of registered valuers in the CIRP, revoked the appointment of two valuers entities, viz., M/S RR & Company and M/S R.K. Associates as they were not registered with the Board. Even though Mr. Singhvi acted in a bonafide manner the same cannot be accepted as the appointment of the unregistered valuer is expressly in contravention of regulation 27 of CIRP Regulations.
The Disciplinary Committee consisting of Dr. Mukulita Vijayvargiya noted that the conduct of Mr. Rajneesh did not comply with IBBI Circular IBBI/RV/019/2018 dated 17th October 2018 which provided in para 6 that no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder.
the Disciplinary Committee, in the exercise of the powers conferred under section 220 (2) of the Insolvency and Bankruptcy Code, 2016 and in pursuance of sub-regulations (7), (8), (9) and (10) of Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, disposed of the Show Cause Notice with the certain directions.
Firstly, Mr. Rajneesh Singhvi shall not seek or accept any process or assignment or render any services under the Code for a period of three months from the date of coming into force of this Order. He shall, however, continue to conduct and complete the assignments / processes he has in hand as on date of this order.
Secondly, this Order shall come into force on expiry of 30 days from the date of its issue.
Thirdly, a copy of this order shall be forwarded to the Indian Institute of Insolvency Professionals of ICAI where Mr. Rajneesh Singhvi is enrolled as a member.
Fourthly, a copy of this Order shall also be forwarded to the Registrar of the Principal Bench of the National Company Law Tribunal, for information.
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