Krishna, a Legal Advisor, engages in providing of professional services, such as the submission of petitions before Tribunals and Courts. Gopika, the spouse of Krishna, holds the Designation of Registered Insolvency Prof

The facts of the case are similar to the case of Mr. Sanjay Kumar Ruia (Respondent) under Clause 15(2) of the Disciplinary Policy of IIIPI read with Clause 24(1)(c) of IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, (2016), in the CIRP of S.N. Plumbing Private Limited, dated May 30, 2019. The Disciplinary Committee observed that Mr. Ruia appointed his spouse as IRP, which is a clear case of conflict of interest. The Committee noted that being a Professional, there is a clear case of Conflict of Interest and it would have been better if the Respondent could have submitted his inability to proceed rather than appointing a relative (spouse) to a position which could hamper his independence. This is a clear case of contravention of the provisions of sections 20, 23, 208(2)(a) of the Code, regulations 7(2)(a) and (h) of the IPR, and clauses 1, 2, 3, 5, 9, 10, 12, 14 and 25 of the Code of Conduct thereof. Going by the above order of the Disciplinary Committee, it could be said that Gopika, in the given question, is not right in accepting the assignment when it was her husband who proposed her name. An insolvency professional must provide services for remuneration which is charged in a transparent manner, is a reasonable reflection of the work necessarily and properly undertaken, and is not inconsistent with the applicable regulations. An Insolvency professional shall disclose the fee payable to him, the fee payable to the insolvency professional entity, and the fee payable to professionals engaged by him to the insolvency professional agency of which he is a professional member, and the agency shall publish such disclosure on its website. An Insolvency professional must refrain from accepting too many assignments if he is unlikely to be able to devote adequate time to each of his assignments. Alternate Answer: Independence and Impartiality: The Code of Conduct requires the IP to maintain complete independence in professional relationships. It is not correct on the part of Mrs. Gopika to accept assignments which affect her independence. An insolvency professional must maintain complete independence in his professional relationship and should conduct the Insolvency resolution, liquidation or bankruptcy process, as the case may be, independent of external influences. An insolvency professional shall not take up an assignment under the Code if he, any of his relatives, any of the partners or directors of the insolvency professional entity of which he is a partner or director, or the insolvency professional entity of which he is a partner or director is not independent, in terms of the regulations related to the processes under the code, in relation to the Corporate Person / Debtor and its related parties. An insolvency professional shall ensure disclosure of the relationship, if any, of the other professionals engaged by it with itself, the corporate debtor, the financial creditor, the interim finance provider, if any, and the prospective resolution applicant, to the insolvency professional agency of which he is a member, within the time specified as per the Code. Remuneration and Costs: IBBI is empowered by the Insolvency and Bankruptcy Code, 2016, to issue a show cause notice even without a complaint made against IP if it has reasonable grounds to believe IP has contravened any provisions. An insolvency professional must provide services for remuneration which is charged in a transparent manner, is a reasonable reflection of the work necessarily and properly undertaken, and is not inconsistent with the applicable regulations. An Insolvency professional shall disclose the fee payable to him, the fee payable to the insolvency professional entity, and the fee payable to professionals engaged by him to the insolvency professional agency of which he is a professional member, and the agency shall publish such disclosure on its website. An Insolvency professional must refrain from accepting too many assignments if he is unlikely to be able to devote adequate time to each of his assignments. Thus, it was not right of Gopika to accept the assignments when it was her husband who proposed her name.