---
title: "Insolvency Professional cannot play two roles viz.‘profession’ and ‘employment’ simultaneously"
date: 2017-03-13
author: "Arundhati Sukhtankar"
url: https://www.indialaw.in/blog/commercialcorporate/insolvency-professional-cannot-play-two-roles-viz-profession-employment-simultaneously/
---

# Insolvency Professional cannot play two roles viz.‘profession’ and ‘employment’ simultaneously

Posted On - 13 March, 2017 •

By - [Arundhati Sukhtankar](https://www.indialaw.in/author/arundhati-sukhtankar/ "Posts by Arundhati Sukhtankar")

[![|](https://www.indialaw.in/wp-content/uploads/img5.jpg)](https://www.indialaw.in/wp-content/uploads/img5.jpg)

The Insolvency and Bankruptcy Board of India (“IBBI”), the regulatory body constituted under the Insolvency and Bankruptcy Code, 2016 (the “Code”), in its first order rejected an application for registering an Insolvency Professional (“IP”). The order has been issued in an application submitted by the vice president of a leading accountancy firm under the IBBI (Insolvency Professionals) Regulations 2016 (“Regulations”) for registering his self as an IP. Under the Regulations, an individual registered with an Insolvency Professional Agency (“IPA”) as a professional can make an application for registration as an IP. In this case, the Indian Institute of Insolvency Professionals of ICAI was the IPA, which recommended the registration.

IBBI rejected the application on the ground that the applicant is currently under employment and the code of conduct specified in the Regulation requires that an IP must not engage in ‘any employment’.

The applicant on his behalf contended that the code of conduct only prohibits an IP from employment with the entity where he was appointed as a resolution professional, liquidator, bankruptcy trustee etc. as the objective was to maintain independence and avoid conflict of interest. The applicant also argued that the requirements of the code of conduct cannot be used to determine the eligibility for registration as an IP.

IBBI rejected the arguments of the applicant on the following grounds:

1. IBBI held that the code of conduct requires that an IP must not engage in ‘any employment’, therefore an employed person cannot hold registration as an IP. It envisages that a person must not play two roles- profession and employment – simultaneously. It is simialr to the requirement that a person in employment cannot practice as an advocate and vice versa.
2. IBBI rejected the contention that the objective of the above requirement is to avoid conflict of interest on the ground that there are many other provision under the Regulations to avoid such conflict. According to IBBI, the sole objective behind such a requirement is that a professional must have undivided loyalty and unflinching attention towards his professional obligations. IBBI observed the crucial role played by the IP under the Code such the requirement that the IP has to submit the resolution plan within 180 days of the resolution commencement, beyond which the corporate is pushed into liquidation. Therefore, according to IBBI, it is beyond comprehension to have an employed person simultaneously act as an IP. The objective of the clause was total commitment for the profession. The only exception is the provision, which allows an IP to temporarily surrender the registration and thereafter engage in employment. However, this is only an exception and this exception does not allow a person to engage in employment without surrendering registration.

 

- IBBI also rejected the contention that the requirements of the code of conduct cannot be used to determine the eligibility for registration as an IP. According to IBBI, the Regulations require an IP to follow the code of conduct always. The code of conduct does not allow an IP to engage in any employment. The current applicant is engaged in an employment. Assuming the code of conduct is not an eligibility requirement, as contended by the applicant, what purpose would it serve if IP cannot render services as an IP after granting registration? He would be violating the code of conduct the moment he is granted the registration.

 

The order is significant as it clarifies current confusion regarding the eligibility of an IP. From a regulatory perspective, the order makes it clear that the requirement of the code of conduct shall be read together with provisions of the regulations.A

Disclaimer - This article is intended for general informational purposes and does not constitute legal advice. Readers should seek specific legal counsel in relation to their individual circumstances.

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# IndiaLaw LLP — Offices & Contact Details

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## General Contact

| | |
|---|---|
| **Website** | https://www.indialaw.in |
| **Primary email** | contact@indialaw.in |
| **Primary phone** | +91 836-9995919 |
| **Contact form** | https://www.indialaw.in/connect/ |
| **Careers (separate channel)** | https://www.indialaw.in/careers/ |


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## All Offices (9 locations across 8 cities)

### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers)

| | |
|---|---|
| **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 |
| **Phone** | [022-6924-7400](tel:02269247400) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP |
| **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. |

### 2. Mumbai — Non-Litigation Office (Excelsior, Fort)

| | |
|---|---|
| **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 |
| **Phone** | [022-697-40500](tel:022-697-40500) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Non-litigation only — consultations, negotiations, transactional work |
| **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. |

### 3. Delhi

| | |
|---|---|
| **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/delhi/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate |
| **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. |

### 4. Kolkata

| | |
|---|---|
| **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal |
| **Phone** | [+91 33 4813 1001](tel:+913348131001) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/kolkata/ |
| **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer |
| **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. |

### 5. Chennai

| | |
|---|---|
| **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/chennai/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. |

### 6. Bengaluru (Bangalore)

| | |
|---|---|
| **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 |
| **Phone** | [080-4167-2444](tel:08041672444) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/bengaluru/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour |
| **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. |

### 7. Hyderabad

| | |
|---|---|
| **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana |
| **Phone** | [040-6666-5166](tel:04066665166) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/hyderabad/ |
| **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Particularly well known for complex banking matters and real estate transactions. |

### 8. Cochin (Kochi)

| | |
|---|---|
| **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala |
| **Phone** | [0484-3583961](tel:04843583961) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/cochin/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. |

### 9. Noida (NCR)

| | |
|---|---|
| **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/noida/ |
| **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate |
| **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) |
| **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. |

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## Quick-Dial Phone List

| Office | Phone |
|---|---|
| Mumbai HO (Apeejay) | 022-6924-7400 |
| Mumbai Excelsior | 022-697-40500 |
| Kolkata | +91 33 4813 1001 |
| Bengaluru | 080-4167-2444 |
| Hyderabad | 040-6666-5166 |
| Cochin | 0484-3583961 |
| **General / Marketing line** | **+91 836-9995919** |

Delhi, Chennai and Noida route through the general number.

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