IBC Section 207: Registration of insolvency professionals

Section 207 of Insolvency and Bankruptcy Code, 2016: Registration of insolvency professionals

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Every insolvency professional shall, after obtaining the membership of any insolvency professional agency, register himself with the Board within such time, in such manner and on payment of such fee, as may be specified by regulations.

(2) The Board may specify the categories of professionals or persons possessing such qualifications and experience in the field of finance, law, management, insolvency or such other field, as it deems fit.

Legal Commentary & Landmark Judgments: Section 207

Section 207 prescribes the criteria, application process, and conditions for the formal Registration of Insolvency Professionals with the Board.

Application for Registration: An enrolled professional member of an IPA applies to the Board in the prescribed form with fees to obtain registration as an insolvency professional.
Eligibility Criteria: Requires passing the Limited Insolvency Examination (LIE), completing pre-registration educational courses, and maintaining a spotless disciplinary track record.
Conditions of Registration: The professional must comply with ongoing regulatory mandates, professional fee rules, and mandatory continuing education requirements.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court held that the rigorous qualification and registration standards under Section 207 ensure that insolvency professionals possess the economic and legal acumen necessary to manage complex restructurings.
Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: Reiterated that statutory licensing under Section 207 establishes public trust in insolvency officers.

Courtroom Practice & Strategic Litigation Guidance:

Insolvency professionals must ensure timely payment of annual regulatory fees and submission of half-yearly compliance certificates under Section 207 to prevent administrative suspension of their registration.