An expert committee with the Insolvency and Bankruptcy Board of India (IBBI) has proposed a new set of rules to avoid duplication of action against the erring insolvency professionals (IPs). In a report, the committee noted that parallel disciplinary actions by both IBBI and insolvency professional agencies (IPAs) for similar contraventions can be avoided, by periodic data sharing and regular review meetings between the two.
Preventing double jeopardy for IPs
“It was observed that in the absence of a structured coordination mechanism, there was a possibility of double jeopardy — the same IP being subject to multiple proceedings for the same issue — which could be contrary to the principles of natural justice and…