In the matter of Mr. Balaknath Bhattacharyya, Insolvency Professional

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(Disciplinary Committee)

No. IBBI/DC/51/2020
4th December 2020

ORDER

In the matter of Mr. Balaknath Bhattacharyya, Insolvency Professional (IP) under Section 220 of the Insolvency and Bankruptcy Code, 2016 (Code) read with Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016 and Regulation 13 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.

This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/INSP/2019/29 dated 3 rd July,2020, issued to Mr. Balaknath Bhattacharyya, Sahabagan, Salua, PO-R Gopalpur, Dist-North 24 Paraganas, Kolkata, West Bengal- 700136 who is a Professional Member of the Insolvency Professional Agency of Institute of Cost Accountants of India and an Insolvency Professional registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-003/IP-N00096/2017-18/10971.

Background

1. Mr. Balaknath Bhattacharya, IP was appointed as an interim resolution professional (IRP) for the corporate insolvency resolution process (CIRP) in the matter of Advance Power Infra Tech Ltd., Corporate Debtor (CD) vide Order of the Hon’ble National Company Law Tribunal, Bench at Kolkata (AA) dated 27.09.2018 which admitted an application for CIRP under Section 9 of the Code. He was confirmed by Committee of Creditors (CoC) as resolution professional (RP) on 23.10.2018 to conduct the CIRP. Asthere being no resolution plans received within the stipulated time, the liquidation orderin respect of the CD was passed by the AA on 06.05.2019 and IP, Mr. Sanjay Kumar Sarkar was appointed as the Liquidator.

1.1 In exercise of its powers under section 218 of the Code read with the IBBI (Inspection and Investigation) Regulations, 2017, the IBBI vide Order dated 6 th December 2019 appointed an Inspecting Authority (IA) to conduct an inspection of Mr. Balaknath Bhattacharyya, on having reasonable grounds to believe that the IP had contravened provisions of the Code, Regulations, and directions issued thereunder. IA submitted the Inspection Report to IBBI on 29.01.2020.

1.2 The IBBI on 3rd July 2020 had issued the SCN to Mr. Balaknath Bhattacharyya, based on findings in the inspection report in respect of his role as IRP/ RP in the CIRP of Advance Power Infra Tech Ltd., CD. The SCN alleged contraventions of several provisions of the Insolvency and Bankruptcy Code, 2016 (Code), IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016 (CIRP Regulations), the IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations) and the Code of Conduct under regulation 7(2) thereof. Mr. Balaknath Bhattacharyya replied to the SCN vide email dated 20th July 2020.

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