Insolvency Professional Agency (Sec. 199-205)

“Save as otherwise provided in this Code, no person shall carry on its business as
insolvency professional agencies under this Code and enrol insolvency professionals as its
members except under and in accordance with a certificate of registration issued in this behalf
by the Board.” VL Note : –

“The Board shall have regard to the following principles while registering the insolvency
professional agencies under this Code, namely: –
(a) to promote the professional development of and regulation of insolvency
professionals;
(b) to promote the services of competent insolvency professionals to cater to the
needs of debtors, creditors and such other persons as may be specified;
(c) to promote good professional and ethical conduct amongst insolvency
professionals;
(d) to protect the interests of debtors, creditors and such other persons as may be
specified;
(e) to promote the growth of insolvency professional agencies for the effective
resolution of insolvency and bankruptcy processes under this Code.
” VL Note : –

“(1) Every application for registration shall be made to the Board in such form and
manner, containing such particulars, and accompanied by such fee, as may be specified by
regulations:
Provided that every application received by the Board shall be acknowledged within
seven days of its receipt.
(2) On receipt of the application under sub-section (1), the Board may, on being
satisfied that the application conforms with all requirements specified under sub-section (1),
grant a certificate of registration to the applicant or else, reject, by order, such application:
Provided that no order rejecting the application shall be made without giving an
opportunity of being heard to the applicant:
Provided further that every order so made shall be communicated to the applicant within
a period of fifteen days.
(3) The Board may issue a certificate of registration to the applicant in such form and manner and subject to such terms and conditions as may be specified.
(4) The Board may renew the certificate of registration from time to time in such manner
and on payment of such fee as may be specified.
(5) The Board may, by order, suspend or cancel the certificate of registration granted to
an insolvency professional agency on any of the following grounds, namely: –
(a) that it has obtained registration by making a false statement or misrepresentation
or by any other unlawful means;
(b) that it has failed to comply with the requirements of the regulations made by
the Board or bye-laws made by the insolvency professional agency;
(c) that it has contravened any of the provisions of the Act or the rules or the
regulations made thereunder;
(d) on any other ground as may be specified by regulations:
Provided that no order shall be made under this sub-section unless the insolvency
professional agency concerned has been given a reasonable opportunity of being heard:
Provided further that no such order shall be passed by any member except whole-time
members of the Board.” VL Note : –

“Any insolvency professional agency which is aggrieved by the order of the Board made
under section 201 may prefer an appeal to the National Company Law Appellate Tribunal in
such form, within such period, and in such manner, as may be specified by regulations.” VL Note : –

“The Board may, for the purposes of ensuring that every insolvency professional agency
takes into account the objectives sought to be achieved under this Code, make regulations to
specify–
(a) the setting up of a governing board of an insolvency professional agency;
(b)the minimum number of independent members to be on the governing board of
the insolvency professional agency; and
(c) the number of the insolvency professionals being its members who shall be on
the governing board of the insolvency professional agency.
” VL Note : –

“An insolvency professional agency shall perform the following functions, namely: –
(a) grant membership to persons who fulfil all requirements set out in its bye-laws
on payment of membership fee (b) lay down standards of professional conduct for its members;
(c) monitor the performance of its members;
(d) safeguard the rights, privileges and interests of insolvency professionals who
are its members;
(e) suspend or cancel the membership of insolvency professionals who are its
members on the grounds set out in its bye-laws;
(f) redress the grievances of consumers against insolvency professionals who are
its members; and
(g) publish information about its functions, list of its members, performance of its
members and such other information as may be specified by regulations.” VL Note : –

“Subject to the provisions of this Code and any rules or regulations made thereunder and
after obtaining the approval of the Board, every insolvency professional agency shall make
bye-laws consistent with the model bye-laws specified by the Board under sub-section (2) of
section 196. ” VL Note : –