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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Rohit, an insolvency professional, is a member of an insolvency professional agency. After a CIRP matter, he refuses to let the agency examine his files, arguing that the records are confidential to the Adjudicating Authority. Which statement is correct under the Code's code of conduct?

Rohit is in breach. The code of conduct in Section 208(2) obliges every insolvency professional to allow the insolvency professional agency to inspect his records. This duty does not depend on an Adjudicating Authority order or any claimed confidentiality.

  1. AHe may refuse, because only the Board may inspect records
  2. BHe may refuse, as records of Adjudicating Authority proceedings are privileged
  3. CHe is in breach, since he must allow the agency to inspect his recordsCorrect
  4. DHe is in breach only if the Adjudicating Authority orders inspection

Explanation

Section 208(2)(c) requires every insolvency professional to allow the insolvency professional agency of which he is a member to inspect his records. No privilege or prior order is needed. Option A is wrong because the duty runs to the agency, and the Board separately receives copies of records.

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