IBBI Suspends Insolvency Professional Pankaj Narang for Two Years Over CIRP Violations and Governance Lapses
Court / Authority
Insolvency & Bankruptcy Board
Update / Judgement Date
23 Aug 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
Facts and Findings
The Insolvency and Bankruptcy Board of India (IBBI), through its Disciplinary Committee, has suspended the registration of insolvency professional Mr. Pankaj Narang for a period of two years for multiple contraventions during the Corporate Insolvency Resolution Process (CIRP) of J.B.K Developers Private Limited.
The proceedings arose from a complaint received in March 2025, followed by an investigation under Section 218 of the Insolvency and Bankruptcy Code, 2016. A Show Cause Notice was issued in September 2025 alleging violations of statutory duties and professional conduct obligations.
The Disciplinary Committee found that Mr. Narang failed to place a mandatory agenda for his replacement before the Committee of Creditors (CoC), despite a requisition from homebuyers representing more than 33% of voting rights. The Committee held that Regulation 18(3) of the CIRP Regulations imposes a mandatory obligation, leaving no discretion once the statutory threshold is met. The RP’s failure to verify voting share claims transparently, coupled with misrecording of CoC minutes regarding prior consideration of such agenda, was treated as a serious lapse.
Further, the Committee held that Mr. Narang failed to comply with GST requirements applicable during CIRP. Despite statutory obligation to obtain GST registration within 30 days of appointment, no registration was secured. The explanation citing lack of KYC documents and non-cooperation of promoters was rejected, particularly in light of available remedies under the Code and special GST procedures applicable to CIRP cases.
The Committee also noted failure to raise invoices for professional fees, in violation of the Code of Conduct, and observed that such obligation cannot be deferred on grounds of GST-related uncertainty.
Additionally, while multiple lists of creditors were published on the corporate debtor’s website, updated lists were not consistently filed on the IBBI portal as required. This was treated as a technical contravention without evidence of stakeholder prejudice.
Considering the cumulative violations, the IBBI ordered suspension of registration for two years, effective after 30 days.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Insolvency & Bankruptcy Board
- What is the IBBI?
- The Insolvency and Bankruptcy Board of India, set up on 1 October 2016 under the Insolvency and Bankruptcy Code, 2016 (IBC), regulates insolvency professionals, insolvency professional agencies, information utilities and registered valuers. It also frames the regulations for insolvency processes.
- When can insolvency be started against a company?
- A financial creditor, an operational creditor or the company itself can apply to the National Company Law Tribunal (NCLT) once there is a default of at least ₹1 crore. On admission, a moratorium starts and an interim resolution professional takes charge.
- How long does the corporate insolvency process take?
- The Code provides 180 days for the corporate insolvency resolution process (CIRP), extendable up to an overall limit of 330 days, including time spent in litigation. In practice, many cases take longer. The IBC (Amendment) Act, 2026, largely in force from 26 May 2026, requires the NCLT to decide admission applications within 14 days and to record reasons for any delay.
- Where can an NCLT insolvency order be appealed?
- An appeal lies to the National Company Law Appellate Tribunal (NCLAT) within 30 days, extendable by up to 15 days for sufficient cause. A further appeal lies to the Supreme Court on a question of law.
- How can White Collar Professional help with a insolvency matter?
- Post your requirement on White Collar Professional to receive proposals from verified Insolvency Professionals, Chartered Accountants and Advocates, compare them, and pay securely through the platform. This page also tracks the latest insolvency IBC and IBBI updates as they are reported.
