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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Rohit, an insolvency professional, is a member of an insolvency professional agency. During a corporate insolvency resolution process he refuses to let the agency inspect his records of the proceedings. Which statement is correct under the Code?

Rohit breaches the code of conduct. Every insolvency professional must allow the insolvency professional agency of which he is a member to inspect his records. This duty applies to all processes and does not depend on a separate Board request.

  1. AHe breaches the code of conduct, which requires him to allow the agency to inspect his recordsCorrect
  2. BHe is within his rights, because records of Adjudicating Authority proceedings are confidential to him
  3. CHe breaches the code only if the Board separately asks for the records
  4. DHe is not in breach, because inspection is only for professionals in liquidation

Explanation

Section 208(2) lays down the code of conduct for every insolvency professional. It includes allowing the insolvency professional agency to inspect his records. Refusal therefore breaches the code in any process, not only liquidation, and no separate Board request is needed.

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