Guardian Insolvency Professional Agency ("Guardian") obtained its certificate of registration from the Insolvency and Bankruptcy Board of India ("Board") by submitting falsified compliance documents. Subsequently, Guardi
CS Professional · Insolvency and Bankruptcy - Law and Practice · PYQS · June 2026
Guardian Insolvency Professional Agency ("Guardian") obtained its certificate of registration from the Insolvency and Bankruptcy Board of India ("Board") by submitting falsified compliance documents. Subsequently, Guardian repeatedly failed to adhere to Board regulations and contravened several provisions of the Insolvency and Bankruptcy Code, 2016. Upon receiving complaints, the Board initiated proceedings against Guardian. Before passing an order, the Board issued a show-cause notice, affording Guardian a reasonable opportunity of being heard, as mandated under the IBC. Following due deliberation by whole-time members exclusively, the Board concluded that there were contraventions by Guardian which needs to be dealt punitively. What are the grounds on which the Board can take cognizance of? Also, what action can the Board initiate.
Answer & Explanation:
Section 201(5) of the IBC provides that 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: that it has obtained registration by making a false statement or misrepresentation or by any other unlawful means; 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; that it has contravened any of the provisions of the Act or the rules or the regulations made thereunder; on any other ground as may be specified by regulations No order shall be made under Section 201(5) unless the insolvency professional agency concerned has been given a reasonable opportunity of being heard and no such order shall be passed by any member except whole-time members of the Board.
Topics: Insolvency and Bankruptcy Board of India (IBBI)
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