Page 21 - Quick Insights Book 2022

3 Insolvency Professional

One of the most remarkable changes in the present body of
Indian jurisprudence has been the recent transition from a
fragmented legal system dealing with the commercial demise
of enterprises to a unified Insolvency and Bankruptcy Code in
2016 (IBC). This has opened a big window of new opportunity
of Chartered Accountants as an Insolvency Professional.

The implementation framework of this Code rests on four
Pillars, viz.,

 Insolvency Regulator

 Insolvency Professional

 Adjudicating Authority, and

 Information Utility

Chartered Accountants contribute to the bulk of the Insolvency
Professionals (IPs) with their experience derived out of
wide-ranging engagements from Finance to Advisory and
Management to Audit available to them.

These professionals are duly enrolled by Insolvency
Professional Agencies (IPAs) and registered for licensing
with the regulatory body, i.e., the Insolvency and Bankruptcy
Board of India (IBBI). The code clearly specifies functions
and obligations of the Insolvency Professionals. Where any
insolvency resolution, liquidation or bankruptcy process has
been initiated, only an Insolvency Professionals shall be
authorized to take such actions as may be necessary in the
manner provided in the Code.

The functions and responsibilities of the IPs include:

 Managing multiple locations of registered/corporate & Insolvency
branch offices and operating units,
 Making over of the management of the company, control Professional
and custody of the assets of the corporate debtor,

 Receiving and processing claims
 Tackle legal issues, including proceedings in National
Company Law Tribunal (NCLT),
 Prepare periodic reports for NCLT & Committee of
Creditors (CoC),
 Identify prospective resolution applicants,
 Provide data rooms, get due diligence organised,
evaluate Resolution Proposals,

8 Quick Insights on Professional Opportunities for Chartered Accountants