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CS Professional · Insolvency and Bankruptcy - Law and Practice · Cross Border Insolvency (Elective 7.5)

Kaveri Exports Pvt Ltd has assets in Singapore and Mumbai. Its resolution professional, Mr. Rao, is an IBBI-registered professional and a member of an insolvency professional agency. While handling the matter, which of the following is part of the code of conduct under Section 208(2) that Mr. Rao must follow?

Section 208(2)(c) obliges an insolvency professional to let the insolvency professional agency inspect his records. The other options misstate the code: records go to both the Board and the agency, bye-law compliance is mandatory, and reasonable care and diligence applies to all duties without a domestic-only limit.

  1. AAllow the insolvency professional agency to inspect his recordsCorrect
  2. BSubmit proceeding records only to the Adjudicating Authority and not to the Board
  3. CComply with the bye-laws of the agency only if the Board separately directs it
  4. DTake care and diligence only in domestic assets, not foreign assets

Explanation

Section 208(2)(c) requires an insolvency professional to allow the agency to inspect his records. He must also send a copy of records of every proceeding before the Adjudicating Authority to both the Board and his agency, so option B is wrong. Bye-law compliance is mandatory, not conditional, and reasonable care and diligence applies to all his duties.

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