IBBI suspends insolvency professional for two years over Associate Decor case
IBBI's Disciplinary Committee suspended an insolvency professional's registration for two years, finding lapses in the insolvency process of Associate Decor Limited.
Key points
- IBBI's Disciplinary Committee suspended an insolvency professional's registration for two years on 13 November 2026.
- IBBI found the professional did not give bidders audited accounts and did not keep records for tax authorities in the Associate Decor case.
- The suspension takes effect 30 days after the order, and creditors' committees must replace the professional in any current case.
Photo: Breather breather / Wikimedia Commons, CC0 1.0 (cropped). Representational image.
The Insolvency and Bankruptcy Board of India (IBBI) on 13 November 2026 suspended the registration of an insolvency professional for two years over lapses it found in the insolvency process of Associate Decor Limited. The order of IBBI's Disciplinary Committee takes effect 30 days after it was issued.
What Happened
According to the order, the National Company Law Tribunal's Bengaluru bench admitted Associate Decor into the corporate insolvency resolution process on 26 October 2018, on an application by Oriental Bank of Commerce. The professional was appointed interim resolution professional and later resolution professional, the person who runs a company during insolvency. IBBI received a complaint on 17 May 2024 and issued a show cause notice on 30 July 2024.
The committee found that the professional:
- did not include audited financial statements for the last two years in the information memorandum given to prospective bidders, largely because a statutory auditor was not appointed in time;
- did not act with due diligence on the creditors' direction to explore an insurance claim for damaged inventory, and did not report back;
- did not maintain and produce the company's records for the insolvency period before tax authorities, which, the order said, exposed the company to a huge tax and penalty demand;
- circulated minutes of several creditors' meetings later than the 48 hours the rules allow, and did not obtain a new GST registration for the company.
The committee said these lapses went against the law's aim of timely resolution and maximising value for stakeholders. It accepted the professional's explanation on one charge, about notice for an adjourned creditors' meeting, and recorded no finding on another, which depends on a tribunal ruling still pending.
What It Means
While suspended, the professional cannot continue existing assignments. The order directs the creditors' committees of any companies the professional is handling to replace them. The order is a completed regulatory action and may be appealed.
For creditors, homebuyers and workers in an insolvency case, the order shows that IBBI holds resolution professionals to the timelines and disclosure duties in its regulations, including sharing audited accounts with bidders.
Source: IBBI disciplinary order
Sources & Citations
- IBBI disciplinary order — Insolvency and Bankruptcy Board of India