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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Rohit Menon, a chartered accountant, has been enrolled as a member of an insolvency professional agency but has not yet registered himself with the Insolvency and Bankruptcy Board of India. A creditor asks him to act as an insolvency professional in a pending matter. What is the legal position under the Code?

Rohit cannot act as an insolvency professional. The Code requires a person to be both enrolled as a member of an insolvency professional agency and registered with the Board. Agency membership alone does not authorise him, and creditor consent cannot cure the missing registration.

  1. AHe may act, since membership of an insolvency professional agency alone is enough
  2. BHe may act for up to one year and then register with the Board
  3. CHe may not act, because he must be both enrolled with an agency and registered with the BoardCorrect
  4. DHe may act if the creditor consents in writing

Explanation

Section 206 says no person shall render services as an insolvency professional without being enrolled as a member of an insolvency professional agency and registered with the Board. Rohit satisfies only the first condition. Agency membership alone is therefore insufficient.

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