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

Sunrise Professionals Forum, an unregistered body, begins enrolling insolvency professionals as its members and advertises itself as an agency under the Insolvency and Bankruptcy Code, 2016. It has no certificate of registration from the Board. What is the legal position?

The forum cannot lawfully enrol insolvency professionals. Section 199 prohibits any person from operating as an insolvency professional agency and enrolling members without a certificate of registration issued by the Board, subject to what the Code otherwise provides.

  1. APermitted, because an agency need only register after enrolling its first fifty members
  2. BPermitted, provided it publishes the list of its members
  3. CNot permitted, because no person may carry on business as an insolvency professional agency and enrol members except under a certificate of registration issued by the BoardCorrect
  4. DPermitted, if a recognised professional body such as the ICSI approves it

Explanation

Section 199 bars any person from carrying on business as an insolvency professional agency and enrolling insolvency professionals as members except under and in accordance with a certificate of registration issued by the Board. Publishing member lists is a function under section 204(g) and does not replace registration.

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