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

Ms. Neha Kapoor, an insolvency professional and member of an agency, receives a written request from the agency to inspect her records relating to a liquidation she conducted. She refuses, saying the records belong to the Adjudicating Authority proceedings only. Under the Code of conduct for insolvency professionals, her refusal is:

Her refusal is not justified. The code of conduct in section 208(2)(c) requires every insolvency professional to allow the insolvency professional agency to inspect her records. The Code does not make this subject to any direction from the Adjudicating Authority or to cancellation of membership.

  1. AJustified, because only the Board may inspect her records
  2. BJustified, because the agency may inspect records only after her membership is cancelled
  3. CNot justified, because she must allow the insolvency professional agency to inspect her recordsCorrect
  4. DNot justified, but only if the Adjudicating Authority directs her to comply

Explanation

Section 208(2)(c) requires every insolvency professional to allow the insolvency professional agency of which she is a member to inspect her records. No condition such as a prior direction from the Adjudicating Authority or cancellation of membership is stated, so the refusal breaches the code of conduct.

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