Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016

The Insolvency and Bankruptcy Board of India (IBBI) issued an order against Mr. Dinesh Sood, an Insolvency Professional (IP). The Disciplinary Committee found that Mr. Sood contravened regulations by appointing an unregistered valuer, M/s Crest Capital Group Pvt. Ltd., in the corporate insolvency resolution processes of three companies. This action was deemed a violation of the Insolvency and Bankruptcy Code and related regulations.

INSOLVENCY AND BANKRUPTCY BOARD OF
INDIA
(Disciplinary Committee)
No. IBBI/DC/30/2020
18th September, 2020

Order

In the matter of Mr. Dinesh Sood, 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/SCN/2020/03 dated 21st May, 2020 issued to Mr. Dinesh Sood, B 1001, Media Society, Plot 18 A, Sector 7, Dwarka, New Delhi - 110075, who is a Professional Member of the ICSI Institute of
Insolvency Professionals and an IP registered with the Insolvency and Bankruptcy Board of India (Board/ IBBI) with Registration No. IBBI/IPA-002/IP-N00046/2016- 2017/10091.

Background

1.1 The Board had issued on 21st May, 2020, theSCN to Mr. Dinesh Sood, based on material available on record in respect of his role as the resolution professional (RP) in appointing M/s Crest Capital Group Pvt. Ltd., an unregistered valuer in the corporate
insolvency resolution process (CIRP) of M/s BRYS International Pvt. Ltd., Neo Infrastructure Pvt. Ltd. and Ujala Pumps Pvt. Ltd. The SCN alleged contraventions of section 208 (2) (a) & (e) of the Insolvency and Bankruptcy Code, 2016 (Code), regulation 7(2) (a), (h) and (i) of the IBBI (Insolvency Professionals) Regulations, 2016 (IP Regulations) read with clauses 10 and 14 of the Code of Conduct contained in the First Schedule of the IP Regulations, regulation 27 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) and IBBI Circular No. IBBI/RV/019/2018 dated 17th October 2018. Mr. Dinesh Sood replied to the SCN vide letter dated 10th June, 2020.

1.2 The Board referred the SCN, response of Mr. Sood 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. The IP availed an
opportunity of personal hearing before the DC on 10th September, 2020 wherein he was represented by Mr. Inder Paul Singh Oberoi, Advocate.

Show Cause Notice

2. The contraventions alleged in the SCN are summarized as follows. Mr Sood has appointed M/s Crest Capital Group Pvt. Ltd. as one of the valuers for valuation of assets in the matter of M/s BRYS International Pvt. Ltd and Neo Infrastructure Pvt. Ltd. on 12.03.2019 and in the matter of Ujala Pumps Pvt. Ltd. on  26.02.2019. M/s Crest Capital Group Pvt. Ltd. is not registered with the IBBI.

Therefore, the IBBI prima facie held the view that Mr. Sood has violated section 208(2)(a) & (e) of the Code and Regulation 7(2) (a), (h) & (i) of the IP Regulations, read with clauses 10 and 14 of the Code of Conduct as contained in the First Schedule of the IP Regulations and regulation 27 of the CIRP Regulations along with IBBI Circular No. IBBI/ RV/019/2018, dated 17th October 2018.

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