In the matter of Mr. Manmohan Jhawar, Insolvency Professional

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(Disciplinary Committee)
No. IBBI/DC/38/2020
6th November, 2020
Order
In the matter of Mr. Manmohan Jhawar, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016 read with section 220 of the Insolvency and Bankruptcy Code, 2016.
Background

1 This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/MON/2018/34 dated 22nd June, 2020 issued to Mr. Manmohan Jhawar, 203 Mahatma Gandhi Road, 1st Floor, Kolkata, West Bengal -700007, who is a Professional Member of the Indian Institute of Insolvency 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/IP-P00334/2017-18/10604.

1.1 In exercise of its power under section 218 of the Code read with the IBBI (Inspection and Investigation) Regulations, 2017, the IBBI vide Order dated 26th April, 2019 appointed an Inspecting Authority (IA) to conduct an inspection of Mr. Manmohan Jhawar, on having reasonable grounds to believe that he had contravened provisions of the Code, or the rules or regulations made, or directions issued thereunder.

1.2 The IA, in its report dated 27th December, 2019 observed that Mr. Jhawar has violated section 18, 20 and 25 of the Insolvency and Bankruptcy Code, 2016 (Code) and Clause 3 and 14 of the First schedule to the IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations).

1.3 The IBBI had issued the SCN on 22nd June, 2020 to Mr. Jhawar, based on findings of IA in respect of his role as an interim resolution professional (IRP) and / or resolution professional (RP) in corporate insolvency resolution process (CIRP) of M/s Hahnemann Housing and Development Private Limited (CD) which commenced vide order dated 26th April, 2018 passed by Hon’ble NCLT Kolkata Bench (AA). The SCN alleged contraventions of several provisions of the Code, IP Regulations and the Code of Conduct under regulation 7(2) thereof. Mr. Jhawar replied to the SCN vide letter dated 13th July, 2020.

1.4 The IBBI referred the SCN, reply of Mr. Jhawar to the SCN 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. Mr. Jhawar availed an opportunity of personal virtual hearing before the DC on 16th September, 2020.

Show Cause Notice
The contraventions alleged in the SCN are summarized as follows:

2. One of the primary duties of IP as laid down under section 18 and section 25 of the Code includes taking control and custody of assets of the CD. The AA, in its order dated 29.10.2018 observed that the RP failed to make efforts to take effective control and custody of seven properties (agricultural lands) of the CD in respect of which title deeds were also handed over by the promoters. Therefore, the IBBI prima facie held the view that Mr. Jhawar has violated sections 18(1)(f), 20(1), 25(2)(a) of the Code read along with Section 208(2)(a) of the Code and regulation 7(2)(h) of the IP Regulations, read with clause 14 of the Code of Conduct as given in the First Schedule of the IP Regulations.

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