Section 24 in Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016
24.
(1)The Agency shall have a Disciplinary Policy, which shall provide for the following -(a)the manner in which the Disciplinary Committee may ascertain facts;(b)the issue of show-cause notice based on the facts;(c)disposal of show-cause notice by a reasoned order, following principles of natural justice;(d)timelines for different stages of disposal of show cause notice; and(e)rights and obligations of the parties to the proceedings.(2)The orders that may be passed by the Disciplinary Committee shall include -(a)expulsion of the professional member;(b)suspension of the professional member for a certain period of time;(ba)[ cancellation of authorisation for assignment;] [Inserted by Notification F. No. IBBI/2019-20/GN/REG043, dated 23.7.2019 (w.e.f. 21.11.2016).](c)admonishment of the professional member;(d)imposition of monetary penalty;(e)reference of the matter to the Board, which may include, in appropriate cases, recommendation of the amount of restitution or compensation that may be enforced by the Board; and(f)directions relating to costs.(3)The Disciplinary Committee may pass an order for expulsion of a professional member if it has found that the professional member has committed-(a)an offence under any law for the time being in force, punishable with imprisonment for a term exceeding six months, or an offence involving moral turpitude;(b)a gross violation of the Code, rules, regulations and guidelines issued thereunder, bye-laws or directions given by the Governing Board which renders him not a fit and proper person to continue acting as an insolvency professional.Explanation. - The violations referred to in sub-clause (b) include -(i)making a false representation or indulging in fraud for the purpose of obtaining creditors' approval under sections 28, 31, 111 or 153 of the Code;(ii)contravening provisions of the Code in a manner which is actionable in accordance with sections 70(2) or 185 of the Code;(iii)knowingly or wilfully committing or authorizing or permitting contravention of sections 14, 96, 101 or 124 of the Code;(iv)contravening provisions of the Code inviting action in accordance with sections 71 or 187 of the Code;(v)aiding or abetting any activity which is actionable in accordance with Chapter VII of Part II or Chapter VII of Part III of the Code,(vi)providing unequal or differential treatment to the disadvantage of a party which cannot be justified with reference to the interests of the insolvency resolution, liquidation or bankruptcy process; or(vii)in any other case it deems fit.(4)Any order passed by the Disciplinary Committee shall be placed on the website of the Agency within seven days from passing of the said order, and a copy of the order shall be provided to each of the parties to the proceeding.(5)Monetary penalty received by the Agency under the orders of the Disciplinary Committee shall be credited to the Insolvency and Bankruptcy Fund constituted under section 224 of the Code.
