In the matter of Mr. Ajay Gulati, Insolvency Professional

Last updated: 16 December 2020

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This order from the Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee addresses a Show Cause Notice issued to Mr. Ajay Gulati, an Insolvency Professional. The notice concerned his acceptance of an assignment as Interim Resolution Professional (IRP) after December 31, 2019, without a valid Authorisation for Assignment (AFA). Mr. Gulati argued he had submitted his consent form prior to the AFA requirement coming into effect. The Disciplinary Committee noted that the Indian Institute of Insolvency Professionals of ICAI had already passed an order finding Mr. Gulati not guilty of professional misconduct in this matter, and therefore, the IBBI disposed of the Show Cause Notice without further direction.

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (Disciplinary Committee) No. IBBI/DC/55/2020 14thDecember 2020 Order In the matter of Mr. Ajay Gulati, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016

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FAQ :

Mr. Ajay Gulati, an Insolvency Professional, was issued a Show Cause Notice for accepting an assignment as Interim Resolution Professional (IRP) after December 31, 2019, without holding a valid Authorisation for Assignment (AFA).

An Authorisation for Assignment (AFA) is an authorisation issued by an insolvency professional agency to an insolvency professional, who is its member, to undertake an assignment.

Regulation 7A of the IBBI (Insolvency Professionals) Regulations, 2016, requiring an AFA, became applicable for assignments accepted or commenced after December 31, 2019.

Mr. Gulati argued that he had submitted his consent form and was eligible to be appointed before the AFA regulation came into effect, and that the AFA requirement did not apply to his situation.

The IBBI Disciplinary Committee disposed of the Show Cause Notice without any direction, as the Indian Institute of Insolvency Professionals of ICAI had already passed an order finding Mr. Gulati not guilty of professional misconduct.