Insolvency professional Partha Sarthy Sarkar suspended for two years
The Insolvency and Bankruptcy Board of India (IBBI) has suspended the registration of insolvency professional Partha Sarathy Sarkar for two years for misconduct. The IBBI found that Sarkar had violated the Insolvency and Bankruptcy Code (IBC) and the Insolvency Professional Regulations (IPR) in a number of ways. These included:
- Failed to cooperate with the Insolvency and Bankruptcy Board of India in carrying out its monitoring functions: The IBBI is responsible for monitoring the insolvency resolution process and ensuring that it is carried out in accordance with the law. Sarkar failed to cooperate with the Board by refusing to provide them with information about the progress of the case.
- Hiding behind technicalities to delay the resolution process: Sarkar repeatedly raised technical objections to the resolution process, which had the effect of delaying the process. For example, he objected to the appointment of a particular valuer, which delayed the process of estimating the value of the corporate debtor’s assets.
- Failed to discharge his duties under the IBC to bring suspicious transactions to the attention of the Adjudicating Authority: Sarkar was aware of suspicious transactions involving the corporate debtor, but he failed to bring these transactions to the attention of the Adjudicating Authority. This is a serious breach of his duties under the IBC.
- Delay in completion of the CIRP: The IBC requires insolvency professionals to seek additional time in case the resolution process is not completed within 180 days. The Board finds that Sarkar did not file requisite submission for extension of the CIRP period.
- Failing to provide the liquidator with information about suspicious transactions: The liquidator is responsible for winding up the affairs of a corporate debtor and distributing its assets to its creditors. Sarkar failed to provide the liquidator with information about suspicious transactions, which could have hampered the liquidator’s ability to carry out his duties.
The IBBI found that Sarkar’s conduct had been “brazen” and “without due regard” to the provisions of the IBC and the IPR. It said that his actions had “undermined the credibility of the insolvency resolution system”.
The suspension order will come into force after 30 days.
Also Read: Commonly used IBC terms and jargons you should know
