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

Mr. Rao, a qualified accountant in Pune, has enrolled as a member of an insolvency professional agency but has not yet registered with the Insolvency and Bankruptcy Board of India. A company in Pune offers him an assignment to act as an insolvency professional under the Code. Which statement is correct?

Mr. Rao cannot act as an insolvency professional. Section 206 requires a person to be both enrolled as a member of an insolvency professional agency and registered with the Board, and he has completed only the enrolment step.

  1. AHe may act, because enrolment with an insolvency professional agency alone is sufficient
  2. BHe may act, provided the Tribunal approves him for that case
  3. CHe may not act, because he must be both enrolled with an agency and registered with the BoardCorrect
  4. DHe may act, because registration with the Board is needed only for cross-border cases

Explanation

Section 206 provides that no person shall render services as an insolvency professional under the Code without being enrolled as a member of an insolvency professional agency and registered with the Board. Mr. Rao satisfies only the first condition. Option A is wrong because enrolment alone is not enough.

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