The Insolvency and Bankruptcy Board of India (IBBI) has disposed of a Show Cause Notice (SCN) issued against Insolvency Professional for an alleged conflict of interest, deferring any final action until the National Company Law Tribunal (NCLT) rules on a related application.
The Disciplinary Committee (DC) found that while there was a prima facie case of a violation of the Insolvency and Bankruptcy Code (IBC), the core issue was also sub-judice before the NCLT in a separate application. To avoid conflicting findings and multiplicity of proceedings, the DC directed the IBBI Board to await the NCLT’s decision before re-examining the matter.
The SCN was issued based on a complaint against the Resolution…