On 3rd January 2018, the board has directed that while acting as an Interim Resolution Professional, a Resolution Professional, or a Liquidator for a Corporate Person under the Code, Insolvency Professional shall exercise reasonable care and diligence and take all necessary steps to ensure that the corporate person undergoing any process under the Code complies with the applicable laws.

It is further clarified that if a corporate person suffers any loss, including penalty, if any, on account of noncompliance of any provision of the applicable laws, such loss shall not form part of insolvency resolution process cost or liquidation process cost under the Code and Insolvency professional will be responsible for the non-compliance of the provision of the applicable laws.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.