"The Insolvency and Bankruptcy Board of India (IBBI) and Insolvency Professional Agencies have come across; some mistakes being committed by some of the Insolvency Professionals (IPs) in conduct of Corporate Insolvency R

As per the provisions of regulation 7(2)(h) of the IBBI (Insolvency Professionals) Regulation, 2016 read with the First Schedule of the said Regulations, the Code of Conduct of Insolvency Professionals in conduct of Corporate Insolvency Resolution process (CIRP) are given below: 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. A clarification has been inserted (w.e.f. 21.07.2021) provides that an insolvency professional may, at any point of time, not have more than ten assignments as resolution professional in corporate insolvency resolution process, of which not more than three shall have admitted claims exceeding one thousand crore rupees each. An insolvency professional must not engage in any employment when he holds a valid authorization for assignment or when he is undertaking an assignment. Where an insolvency professional has conducted a corporate insolvency resolution process, he and his relatives shall not accept any employment, other than an employment secured through open competitive recruitment, with, or render professional services, other than services under the Code, to a creditor having more than ten percent voting power, the successful resolution applicant, the corporate debtor or any of their related parties, until a period of one year has elapsed from the date of his cessation from such process. An insolvency professional shall not engage or appoint any of his relatives or related parties, for or in connection with any work relating to any of his assignment. An insolvency professional shall not provide any service for or in connection with the assignment which is being undertaken by any of his relatives or related parties Explanation: For the purpose of clauses 23A to 23C, "related party" shall have the same meaning as assigned to it in clause (24a) of section 5, but does not include an insolvency professional entity of which the insolvency professional is a partner or director. An insolvency professional must not conduct business which in the opinion of the Board is inconsistent with the reputation of the profession Further, in the matter of 'IDBI Bank Ltd. v. Lanco Infratech Ltd', the NCLT Hyderabad Bench also held that an insolvency Professional must refrain from accepting too many assignments, if he is unable to devote adequate time to each of his assignments as per Clause 22, Schedule I of the Code of Conduct for Insolvency Professionals.