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

Rohan Malhotra, an insolvency professional and member of an insolvency professional agency, is appointed as resolution professional in a corporate insolvency resolution process. The agency asks to inspect his records of the proceedings. Rohan refuses, saying records of Adjudicating Authority proceedings are confidential and are to be shared only with the Board. Which view is consistent with the code of conduct in the Code?

Rohan is wrong. The code of conduct requires an insolvency professional to allow his insolvency professional agency to inspect his records, and to submit copies of records of every Adjudicating Authority proceeding to both the Board and his agency. No court order is needed for agency inspection.

  1. ARohan is right, since only the Board may inspect his records
  2. BRohan is right, provided he has already sent copies to the Adjudicating Authority
  3. CRohan is wrong, as the agency may inspect records only after a court order
  4. DRohan is wrong, as he must allow the agency to inspect his records and also submit copies of Adjudicating Authority proceedings records to both the Board and the agencyCorrect

Explanation

Section 208(2)(c) requires an insolvency professional to allow the agency to inspect his records. Section 208(2)(d) requires him to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board and to the agency of which he is a member. His refusal therefore breaches the code of conduct, and no court order is required.

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