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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

An insolvency professional handling a resolution process with assets in several countries is accused of breaching professional conduct. A complaint is lodged. Under the Code, which authority is empowered to specify the mechanism for redressal of grievances against insolvency professionals and to pass orders on complaints filed against them?

The Insolvency and Bankruptcy Board of India has this power. Section 196(1)(q) lets the Board specify the mechanism for redressing grievances against insolvency professionals and pass orders on complaints, so neither creditors nor foreign courts handle such complaints under the Code.

  1. AThe Insolvency and Bankruptcy Board of IndiaCorrect
  2. BThe Ministry of External Affairs
  3. CThe committee of creditors of the debtor
  4. DThe foreign court where the overseas assets are located

Explanation

Section 196(1)(q) lists among the Board's functions specifying the grievance redressal mechanism against insolvency professionals and passing orders on complaints for compliance with the Code and regulations. The creditors' committee and foreign courts have no such statutory role.

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