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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

Mr. Vikram Rao, an insolvency professional, complies with the Code's conduct requirements on reasonable care, allowing inspection and submitting records, but ignores a condition in his agency's bye-laws, arguing that the Code alone binds him. Which statement is correct under section 208(2)?

He is incorrect. The code of conduct itself requires every insolvency professional to comply with all requirements and terms and conditions in the bye-laws of the agency of which he is a member, so ignoring them breaches the code.

  1. AHe is correct, because bye-laws are only advisory
  2. BHe is correct, because the Code overrides all agency conditions
  3. CHe is incorrect, because the code requires compliance with requirements and terms and conditions in the bye-laws of his agencyCorrect
  4. DHe is incorrect, but only if the Board has separately notified the bye-laws to the Adjudicating Authority

Explanation

Section 208(2)(b) makes compliance with all requirements and terms and conditions specified in the bye-laws of the insolvency professional agency of which he is a member part of the code of conduct. Ignoring them is itself a breach, with no notification condition attached.

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