HC upholds disciplinary committee’s suspension of RP for using ‘IBBI’ in firm name
- News|Blog|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 15 February, 2023
Latest from Taxmann
Case Details: Kapil Goel v. Insolvency and Bankruptcy Board of India - [2023] 146 taxmann.com 554 (Delhi)
Judiciary and Counsel Details
-
- Prathiba M. Singh, J.
- Vikas Mehta & Apoorv Khator, Advs. for the Respondent.
Facts of the Case
In the present case, the Petitioner Resolution Professional (RP) had incorporated a partnership firm named ‘IBBI Insolvency Practitioners LLP’. Considering that RP had used the name ‘IBBI’ in the firm’s name, a show cause notice was issued to RP. The Disciplinary Committee observed that RP’s conduct was in violation of section 208, read with regulations 7(2)(a) and 7(2)(b).
The RP was directed not to take any new assignment until ‘IBBI Insolvency Practitioners LLP’ was removed from the Register of Companies by the Ministry of Corporate Affairs (MCA) and suspended RP’s registration as an insolvency professional for three months from the date of issue of order.
Consequently, the present writ petition was filed challenging the order passed by the Disciplinary Committee. Notice was issued in this writ petition on 8th October 2018. However, it was noticed that none appeared for the RP.
High Court Held
Hon’ble High Court observed that the RP could not have used the name IBBI for his own private entity which would amount to misleading the trade and industry, as well as the stakeholders involved in resolution and insolvency processes.
Hon’ble High Court held that the Disciplinary Committee’s view does not deserve to be interfered with. The order has also already been given effect to by the MCA and the RP’s suspension period of three months as directed by the impugned order had already come to an end.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
