“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 : –
Section 200 Principles governing registration of insolvency professional agency
“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 : –
Section 201 Registration of insolvency professional agency
“(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 : –
Section 202 Appeal to National Company Law Appellate Tribunal
“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 : –
Section 203 Governing Board of insolvency professional agency
“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 : –
Section 204 Functions of insolvency professional agencies
“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 : –
Section 205 Insolvency professional agencies to make bye-laws
“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 : –