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

Ms. Rhea Nair, an insolvency professional and member of an insolvency professional agency, is conducting a process. The agency notifies her that it wishes to inspect her records of the process. She refuses, saying the records belong to the committee of creditors. Under the code of conduct in section 208(2), her refusal is:

Her refusal is not permitted. The code of conduct requires every insolvency professional to allow the insolvency professional agency of which she is a member to inspect her records, with no exception for ongoing processes or creditor ownership claims.

  1. APermitted, since only the Board may inspect records
  2. BPermitted until the Adjudicating Authority orders inspection
  3. CNot permitted, since she must allow the agency to inspect her recordsCorrect
  4. DPermitted if the process is still ongoing

Explanation

Section 208(2)(c) requires every insolvency professional to allow the insolvency professional agency to inspect his records. No exception exists for ongoing processes or for the Board-only inspection argument, so the refusal breaches the code.

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