Insolvency Professionals (Sec. 206 – 208)

Section 206 Enrolled and Registered Persons to act as Insolvency Professionals

No person shall render his services as insolvency professional under this Code without being enrolled as a member of an

insolvency professional agency and registered with the Board. 

VL Note : –

Section 207 Registration of Insolvency Professionals

(1) Every insolvency professional shall, after obtaining the membership of any insolvency professional agency, register

himself with the Board within such time, in such manner and on payment of such fee, as may be specified by regulations.

(2) The Board may specify the categories of professionals or persons possessing such qualifications and experience in the

field of finance, law, management, insolvency or such other field, as it deems fit.

VL Note : –

Section 208 Functions and obligations of insolvency professionals

(1) Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function

of an insolvency professional to take such actions as may be necessary, in the following matters, namely:—

     (a) a fresh start order process under Chapter II of Part III;

     (b) individual insolvency resolution process under Chapter III of Part III;

     (c) corporate insolvency resolution process under Chapter II of Part II;

     (d) individual bankruptcy process under Chapter IV of Part III; and

     (e) liquidation of a corporate debtor firm under Chapter III of Part II.

(2) Every insolvency professional shall abide by the following code of conduct:—

     (a) to take reasonable care and diligence while performing his duties;

     (b) to comply with all requirements and terms and conditions specified in the bye-laws of the insolvency professional

     agency of which he is a member;

     (c) to allow the insolvency professional agency to inspect his records;

     (d) to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board as well as to the

     insolvency professional agency of which he is a member; and

     (e) to perform his functions in such manner and subject to such conditions as may be specified.

VL Note : –