Two-Year Suspension Imposed on Insolvency Professional for Breach of Statutory Duties, GST Non-Compliance, and CIRP Violations

Overview

The Disciplinary Committee of the Insolvency and Bankruptcy Board of India, in its Order No. IBBI/DC/307/2026 dated 23rd March 2026, adjudicated upon a Show Cause Notice issued against Mr. Pankaj Narang, a registered Insolvency Professional bearing Registration No. IBBI/IPA-001/IP-P01006/2017-2018/11657 and a Professional Member of the Indian Institute of Insolvency Professionals of ICAI. The proceedings arose from a complaint filed in connection with his conduct as Resolution Professional in the Corporate Insolvency Resolution Process of M/s J.B.K Developers Private Limited. After thorough examination of the contraventions alleged, the Disciplinary Committee concluded that multiple violations had been established and imposed a two-year suspension of registration on Mr. Pankaj Narang.

Background and Procedural History

The CIRP of M/s J.B.K Developers Private Limited was initiated pursuant to an order of the National Company Law Tribunal, New Delhi dated 17.08.2020. Mr. Pankaj Kumar Singhal was first appointed as Interim Resolution Professional and subsequently elevated to the role of Resolution Professional. He was then replaced by Mr. Vineet Aggarwal on 11.11.2020. Eventually, Mr. Pankaj Narang was appointed as Resolution Professional on 17.05.2023, making him the third RP in this CIRP.

A complaint was received by the Board on 24.03.2025 pertaining to Mr. Pankaj Narang's conduct in this assignment. Acting under Section 218 of the Insolvency and Bankruptcy Code, 2016 read with Regulations 7(2) and 7(3) of IBBI (Inspection and Investigation) Regulations, 2017, the Board appointed an Investigating Authority to conduct a formal investigation.

Following the issuance of a notice of investigation under Regulation 8(1) of the Investigation Regulations on 29.05.2025, Mr. Pankaj Narang submitted his replies on 30.05.2025, 14.06.2025, 27.06.2025, and 12.07.2025. The Investigating Authority submitted its Investigation Report to the Board, which thereafter issued a Show Cause Notice (SCN No. COMP-11011/69/2025-IBBI/1813/1356) on 11.09.2025.

Mr. Pankaj Narang filed replies to the SCN in multiple instalments on 14.09.2025, 27.09.2025, 02.10.2025, and 02.01.2026. A personal hearing via virtual mode was afforded on 02.01.2026, followed by additional written submissions on 03.01.2026, 04.01.2026, and 08.01.2026.

Note by the DC: The Disciplinary Committee observed at the outset that Mr. Pankaj Narang's submissions were fragmented and lacked clarity, which considerably hindered the examination process.

Contravention I — Failure to Place Mandatory Agenda for Replacement of Resolution Professional

Statutory Framework

Regulation 18(3) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) stipulates:

"A resolution professional may place a proposal received from members of the committee in a meeting, if he considers it necessary and shall place the proposal if the same is made by members of the committee representing at least thirty-three per cent of the voting rights."

The DC emphasised that the use of the word "shall" renders this obligation absolute — once the threshold of 33% voting rights is satisfied, the RP retains no discretion to withhold the agenda.

Chronology of Events

The DC constructed a detailed timeline to assess the contravention:

What Transpired in the 13th CoC Meeting (27.12.2024)

During the 13th CoC meeting, when the AR raised the question of RP replacement on behalf of approximately 225 homebuyers, Mr. Pankaj Narang deflected the issue by linking it to payment of CIRP expenses. Rather than addressing the replacement request substantively, he placed an unrelated resolution for reimbursement of insolvency resolution process costs and for treatment of his expenses as interim finance, which was ultimately rejected by 100% of the voting shares. The minutes recorded that he would continue as RP until a new RP was approved by the CoC.