valid as on 27/03/2023

2.17.5. Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019

5. Appointment of professionals.

(1) A bankruptcy trustee may appoint accountants, registered valuers, advocates or other professionals, as may be necessary, to assist him in the discharge of his duties, obligations and functions for a reasonable remuneration and such remuneration shall form part of the bankruptcy process cost: Provided that the following persons shall not be appointed under this regulation, namely-
(a) a relative of the bankruptcy trustee;
(b) a partner or director of the insolvency professional entity of which the bankruptcy trustee is a partner or director;
(c) an insolvency professional who has acted or is acting as an interim resolution professional, a resolution
professional or a liquidator in respect of the corporate debtor;
(d) an associate of the bankrupt;
(e) a related party of the corporate debtor.

(2) Before appointing a professional under sub-regulation (1), the bankruptcy trustee shall obtain a disclosure of details of the existence of any pecuniary or personal relationship with any of the creditors, the bankruptcy trustee, the corporate debtor or the bankrupt, from the professional.

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