For taking an assignment, an IP should have a valid AFA which is issued by the IPA with which he is enrolled as a professional member

Last updated: 08 January 2021

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Quick Summary

This judgement clarifies that an Insolvency Professional (IP) must possess a valid Authorisation for Assignment (AFA) issued by their Insolvency Professional Agency (IPA) to accept any new assignments. The case involved an IP who took on assignments after a specific date without holding a valid AFA, leading to disciplinary action. The ruling underscores the importance of proper authorisation for IPs undertaking resolution or liquidation processes.

Court :
IBBI

Brief :
In the matter of Mr. Kedarram Ramratan Laddha, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016

Citation :
No. IBBI/DC/64/2020

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(Disciplinary Committee)

No. IBBI/DC/64/2020

7th January, 2021

Order

In the matter of Mr. Kedarram Ramratan Laddha, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016

This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/MON/2020/8 dated 27th August, 2020 issued to Mr. Kedarram Ramratan Laddha, 501, Shajanand Shopping Centre, Shahibaug, Ahmadabad - 380004 who is a Professional Member of the Indian Institute ofInsolvency Professional of ICAI (IPA) and an Insolvency Professional (IP) registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-001/IPP00586/ 2017-2018/11115.

Background

1.1 The IBBI had issued the SCN dated 27th August, 2020, to Mr. Kedarram Ramratan Laddhafor accepting the assignment as an Interim Resolution Professional (IRP) in corporateinsolvency resolution process (CIRP) of Regency Linx Exports Private Limited and Premier Futsal Management Private Limited and as a Liquidator in the liquidation process of Steel Konnect (India) Private Limited after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) issued to him by his IPA.

1.2 Mr. Laddha submitted reply to the SCN vide email dated 4th September, 2020. The IBBI referred the SCN, reply of Mr. Laddha and other material available on record to the Disciplinary Committee (DC) for disposal of the SCN in accordance with the Code and Regulations made thereunder. The IP availed an opportunity of personal hearing before the DC on 10th September, 2020.

To know more in details find the attachment file

FAQ :

An Authorisation for Assignment (AFA) is a document issued by an Insolvency Professional Agency (IPA) to an Insolvency Professional (IP), authorising them to take on specific assignments.

Any Insolvency Professional (IP) who wishes to take on an assignment, such as an Interim Resolution Professional (IRP) or Liquidator, must have a valid AFA.

Taking an assignment without a valid AFA can lead to disciplinary action by the Insolvency and Bankruptcy Board of India (IBBI), as demonstrated in this case.

An IP obtains their AFA from the Insolvency Professional Agency (IPA) with which they are enrolled as a professional member.