This member had contravened IBC by engaging an unregistered valuer
Appointing an unregistered valuer got an insolvency professional (IP) Rajneesh Singhvi in trouble with the insolvency regulator IBBI barring him from taking fresh assignments or rendering services for three months.
This order will come into force on expiry of 30 days from the date of issue of the order, which is August 24. Singhvi has, however, been allowed to continue to conduct and complete the assignments/processes he has in hand as on date of the order.
Singhvi had appointed an unregistered valuer Abhishek Ahuja in the Corporate Insolvency Resolution Process (CIRP) of Arjun Ispat India Private Ltd. Ahuja was not a registered valuer as on the date of his engagement for valuation of assets of the corporate debtor. The IBBI’s Disciplinary Committee also noted that Singhvi failed to appoint registered valuer by the 47th day of the insolvency commencement. Under the CIRP regulations, it is the duty of an IP to appoint registered Valuers within 7 days of their appointment and not later than 47th day from insolvency commencement date to determine the fair value and liquidation value of the corporate debtor.
Commenting on this IBBI Disciplinary Committee order, Souvik Ganguly, Founder and Managing Partner, Acuity Law, said the IBBI is making a point that insolvency professionals will be required to follow the applicable rules and regulations in a strict manner. This is so because the insolvency professionals are one of the most important pillars on which the entire insolvency law is built upon. However, the key problem for insolvency professionals is that the Insolvency law does not prescribe the manner in which they can appeal an order of the IBBI, he said. “Most are resorting to filing Writ petitions. This is a time consuming process”, Ganguly said.
Aseem Chawla, Managing Partner, ASC Legal, a law firm, said the order reflects the ongoing endeavours of the Disciplinary Committee to lay down high standards of governance and expects adherence both in letter and spirit of various IBBI pronouncements made from time to time. This is a step in a right direction, he added.