By S&S Co. Advocates & Solicitors · Published 28 May 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
Insolvency professionals in India are regulated by the Insolvency and Bankruptcy Board of India (IBBI) and enrolled with an insolvency professional agency (IPA). They must comply with the Insolvency and Bankruptcy Code, 2016, the regulations made under it, including the IBBI (Insolvency Professionals) Regulations, 2016 and its Code of Conduct, and the bye-laws of their agency. The IBBI and the IPAs can inspect and investigate, and a professional can be proceeded against after a show cause notice and a hearing.
Obligations to file prescribed forms and reports with the Board, and to follow the timelines for constituting the committee of creditors, verifying claims and documenting the process, are regulatory duties owed to the Board and the agency. A committee of creditors' satisfaction with the professional's work does not, by itself, excuse a failure to meet them, and a pattern of lapses across assignments can be treated more seriously than an isolated one.
Penalties that may follow a finding of contravention include a warning, a monetary penalty, suspension and, in serious cases, cancellation of registration. The specific penalty and the procedure depend on the regulation applied and the facts, and the decision can be appealed.