Insolvency of Professionals | CA CS CMA Lawyers |

This article deals with Insolvency of Professionals like Chartered Accountants, Lawyers, Company Secretary and Cost Accountants. The Procedure to put forward the Insolvency and also the Fee for Insolvency is provided below. In our previous post, we have already listed out the CPE Credit Hours Requirement by ICAI to its Members. This Procedure has been mentioned by the ICAI through an official announcement.

Insolvency of Professionals CA CS CMA Lawyers

Inroduction : Insolvency of Professionals

The Indian Institute of Insolvency professionals of ICAI (IIIPI), a section 8 Company formed by the Institute of Chartered Accountants of India to enroll and regulate insolvency professionals as its members in accordance with the Insolvency and Bankruptcy Code 2016 and read with regulations.

As per the Bankruptcy Code, 2016, the insolvency resolution processes are to be conducted by the Insolvency Professionals, who are required to be members of an Insolvency Professional Agency which in turn is to be registered with the Insolvency and Bankruptcy Board of India.

Functions of an Insolvency Professional

Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function of an insolvency professional to take such actions as may be necessary, in the following matters, namely:—
a) a fresh start order process
b) individual insolvency resolution process
c) corporate insolvency resolution process
d) individual bankruptcy process and
e) liquidation of a corporate debtor firm

Eligibility Criteria to become Insolvency Professional

1. For Chartered Accountants to become Insolvency Professional

An individual shall be eligible to be registered for a limited period (as per Regulation 9 of the said Regulations) as an insolvency professional if he has been ‘in practice’ for a minimum period of fifteen years as a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India and who is not in employment.

An Insolvency Professional is required to submit an application for registration in Form A of the Second Schedule of the Insolvency Professionals Regulations to IIIPI with which he is being enrolled on or before 31st December, 2016 along with a non-refundable application fee of Seven thousand rupees.

Fee for Registration:

The Cheque/ DD should be in favour of “Indian Institute of Insolvency Professionals of ICAI” which should be submitted to Secretariat, 4th Floor, Administrative Block, A- 29, Sector- 62, Noida alongwith the Registration Form.

Limited period registration shall be valid for a period of six months from the date of such submission.

2. For Lawyers, Cost Accountants and Company Secretaries to become Insolvency Professional

An individual shall be eligible to be registered for a limited period as an insolvency professional if he has been ‘in practice’ for fifteen years as a cost accountant, company secretary or a lawyer enrolled as a member of their respective institutes/ Bar Council

An Insolvency Professional is required to submit an application for registration in Form A of the Second Schedule of the Insolvency Professionals Regulations to IIIPI with which he is being enrolled on or before 31st December, 2016 along with a non-refundable application fee of Seven thousand rupees.

Fee for Registration:

The DD should be in favour of “Indian Institute of Insolvency Professionals of ICAI” which should be submitted to Secretariat, 4th Floor, Administrative Block, A- 29, Sector- 62, Noida alongwith the Registration Form.

Limited period registration shall be valid for a period of six months from the date of such submission. After that the eligibility criteria to become an Insolvency Professional would be as per Regulation 5 of the Insolvency Professionals Regulations.

The Registration Form is available on http://www.iiipicai.in/index.php

Conclusion : Insolvency Professionals

For other details, please refer the Insolvency Professionals Regulations, Click Here. Also contact our help desk team for more questions.