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

Ravi, an insolvency professional, wants to act in a matter involving a cross-border debtor. He is a member of an insolvency professional agency (IPA). Which statement about his status and the agency's bye-laws is correct under the provisions given?

Ravi must register with the Board after becoming a member of an insolvency professional agency, and the agency's bye-laws must be made after Board approval and be consistent with the Board's model bye-laws. Neither IPA membership alone nor NCLAT approval satisfies the requirements.

  1. AHe must register with the Board after obtaining IPA membership, and the IPA's bye-laws need Board approval and must be consistent with the model bye-lawsCorrect
  2. BHe need only register with the IPA, as Board registration is optional
  3. CThe IPA may adopt bye-laws without Board approval if they are consistent with its own practice
  4. DThe IPA's bye-laws are approved by the NCLAT

Explanation

Section 207(1) requires every insolvency professional, after obtaining IPA membership, to register with the Board. Section 205 requires IPA bye-laws to be made after Board approval and consistent with the model bye-laws. The NCLAT hears appeals from IPAs against Board orders under Section 201 (Section 202), not bye-law approvals.

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