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As per case facts, the Petitioner, an Interim Resolution Professional, was confirmed as Resolution Professional with bifurcated fees: his fees and support service fees for 'Quantuum Resolution Professional Private Limited'.
...A complaint led to a Show Cause Notice alleging the Petitioner improperly received consolidated fees. The Disciplinary Committee suspended his registration for one year. The Petitioner filed a Writ Petition, arguing that the penalty was disproportionate, citing the automatic suspension of his Authorisation for Assignment due to the Show Cause Notice, the Disciplinary Committee's significant delay in proceedings, and his contention that he disbursed all support service funds to team members without unlawful gain, despite receiving them initially. The question arose whether the High Court should intervene given the alleged procedural infirmities, the delay-induced pre-punishment, and the proportionality of the imposed penalty. Finally, the High Court found the penalty disproportionate, noting the Disciplinary Committee failed to consider the prejudice from prolonged proceedings and mitigating circumstances. The Court reduced the suspension to the period already undergone, declaring it ended from the date of the Order.
Bench
Applied Acts & Sections
Section 7
–The Insolvency and Bankruptcy Code, 2016
Section 218
–The Insolvency and Bankruptcy Code, 2016
Section 219
–The Insolvency and Bankruptcy Code, 2016
Legal Notes
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