Insolvency Professional Agencies (IPAs) are the entities that have been incorporated as not-for-profit companies to enrol. Educate, monitor, regulate, and guide the insolvency professionals. Section 3(20) of the Insolvency and Bankruptcy Code, 2016 (IBC) explains that “insolvency professional agency” means any person registered with the Board under Section 201 as an insolvency professional agency. An Insolvency Professional Agency (IPA) is an organisation that acts as a regulatory body for Insolvency Professionals (IPs) in India. Section 204 of the Insolvency and Bankruptcy Code, 2016 states the functions of insolvency professionals in India. This section states the function of granting membership to insolvency professionals, frames the standard of professional conduct and ethics, and protects the rights and privileges of the members. It also enquires about other grievances and takes steps to resolve them. These agencies are governed by Sections 199 to 205 of the Insolvency and Bankruptcy Code, 2016. These sections cover offences and penalties related to false information, destruction of records, fraudulent conduct, and non-cooperation in insolvency proceedings. Punishments include a fine and imprisonment.
At present, there are three IPAs registered under the Insolvency and Bankruptcy Code of India. They are
- The ICSI Institute of Insolvency Professionals
- Indian Institute of Insolvency Professionals (ICAI)
- Insolvency Professional Agency of the Institute of Cost Accountants of India
Functions of IPAs
- Regulatory functions: Drafting detailed standards and codes of conduct through bye laws that are made public and are binding on all members
- Quasi-judicial functions: IPAs are addressing the grievances of aggrieved parties, hearing complaints against members, and taking suitable actions.
- Executive functions: IPAs are monitoring, inspecting, and investigating members on a regular basis and gathering information on their performance and malfeasance in the conduct of IP duties.
AUTHOR:
Thirisha S, 4th-year student of B.A., LL.B. (Hons.) from School Of Excellence in Law.