"As an important stakeholder of the ecosystem, the Insolvency professionals are required to maintain fine balance between high degree of proficiency and ethical standards. Ethical standards largely entail commitment to e

"As an important stakeholder of the ecosystem, the Insolvency professionals are required to maintain fine balance between high degree of proficiency and ethical standards. Ethical standards largely entail commitment to excellence, preservation of reputation, and requires stringent compliance to statute without any consideration of undue favours or moral turpitude. The IP is expected to act in good faith in discharge of his dues, with utmost integrity, objectivity, independence, impartiality and should make earnest efforts to maximize the value of assets of the debtor. An IP needs to ensure that the Corporate Insolvency Resolution Process is run in a fair and objective manner in the best interest of the stakeholders. Thus, it is of utmost importance that the IPs maintain high standards of professional ethics, so as to maximise value for all stakeholders. The professionals are also expected to maintain the highest standards of professional competence and professional ethics while discharging their duties." Further to the above information, the following are few instances of Insolvency Professional Contraventions and his explanation thereon based on Professional and Ethical Practices of IPs. By citing the appropriate Sections of the IBC, 2016 Act / Regulations of IBBI, explain if the IP's explanation is correct or otherwise. Case: Appointment of third valuer at the instance of CoC. Contravention : RP appointed third valuer to determine fair value and liquidation value of the CD at the desire of CoC. Submission by IP: The RP submitted that the third valuation was done for the satisfaction of the stakeholder only. The decision of the CoC to get a third valuation done was in exercise of its commercial wisdom to better equip the CoC to take a final call on resolution plans. That the conduct of the third valuation at the desire of the CoC does not invalidate the decisions or actions taken by the RP and has not, in any way, affected the acceptance or rejection of resolution plan.