Section 3(1) in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
(1)An insolvency professional shall be eligible to be appointed as a liquidator if he, and every partner or director of the insolvency professional entity of which he is a partner or director, is independent of the corporate debtor.Explanation. - A person shall be considered independent of the corporate debtor, if he-(a)is eligible to be appointed as an independent director on the board of the corporate debtor under section 149 of the Companies Act, 2013 (18 of 2013), where the corporate debtor is a company;(b)is not a related party of the corporate debtor; or(c)has not been an employee or proprietor or a partner:(i)of a firm of auditors or [secretarial auditors] [Substituted 'company secretaries' by Notification No. IBBI/2017-18/GN/REG028, dated 27.3.2018 (w.e.f. 15.12.2016).] or cost auditors of the corporate debtor; or(ii)of a legal or a consulting firm, that has or had any transaction with the corporate debtor contributing ten per cent or more of the gross turnover of such firm, in the last three financial years.
