The Insolvency and Bankruptcy Board of India (IBBI) has time and again reiterated that the role of Insolvency Professional (‘IP’) is sacrosanct for achieving the legislative intent behind the Insolvency and Bankruptcy Code, 2016 (‘I&B Code’) itself. It has expressed vide its various circulars and orders that even a slight deviation from the scope of duties endowed upon the Insolvency Professional under the Code will attract strict penalization and disciplinary action from the Board.
The Board recapitulated its intent by pulling up the socks of all the working IPs through its recent order passed against an eminent IP, Mr. Vijay Kumar Garg. The order highlights how an IP’s role is of utmost vitality to any Corporate Insolvency Resolution Process (‘CIRP’) and his dutifulness the breath and soul of the Code. Key take-aways from the order have been discussed below.