IBBI suspends insolvency professional's licence over use of its name

Taking exception to the use of its name, the Insolvency and Bankruptcy Board of India (IBBI) has suspended the licence of an insolvency professional.  The insolvency professional, Kapil Goel, had registered his company as “IBBI Insolvency Practioners LLP”. The company was incorporated in November 2017.

When the regulator saw this, it had sought a clarification from Goel. He had told the board that he has already asked the Registrar of Companies to change the name, but the name had not been changed. 

Following this, IBBI suspended Goel's licence to practise for three months, starting September 6. He will be able to take up cases only after the name of the company has been changed. 

Goel, a chartered accountant, had submitted to the IBBI that the name change had been done in February. However, when the board checked the records available with the ministry of corporate affairs, the change had not been done.

The disciplinary committee stated, "Even after advice by the board, the company master data on the the MCA website continued to display the name "IBBI Insolvency Practioners LLP". It also noted that Goel's explanation that it was without any “intention and motive to gain material benefit” could not be accepted as an argument.

The committee said the use of the regulator's name without its permission was unacceptable.