IBBI disciplinary committee cites repeated non-appearance in Kannan Tiruvengadam case

This is a disciplinary order issued by the Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee regarding Shri Kannan Tiruvengadam, an Insolvency Professional, concerning his conduct during the liquidation of BRG Iron & Steel Co. Private Limited. It matters to citizens as it outlines regulatory enforcement actions against professionals managing corporate insolvency processes.

Who it concerns: Shri Kannan Tiruvengadam (Insolvency Professional/Liquidator), the Insolvency and Bankruptcy Board of India (IBBI), the Disciplinary Committee, and the stakeholders of BRG Iron & Steel Co. Private Limited (including Rimjhim Ispat Limited and the Creditors' Consultation Committee).

What the Board found or ordered

• The Disciplinary Committee (DC) disposed of a Show Cause Notice (SCN) issued on 09.07.2026 to Shri Kannan Tiruvengadam.
• The investigation was initiated after the Central Board of Direct Taxes (CBDT) shared information alleging that the sale of assets was not conducted in a fair and just manner.
• The DC noted that Shri Kannan Tiruvengadam failed to appear personally for three scheduled hearings (24.08.2026, 25.08.2026, and 27.08.2026), which the DC characterized as conduct casting aspersion on his 'fit and proper' status under Regulation 4(1)(g) of the IBBI (Insolvency Professionals) Regulations, 2016.
• The DC rejected the preliminary objection regarding the composition of the DC, noting that Section 220(1) of the Insolvency and Bankruptcy Code, 2016, was amended effective 26.05.2026 to allow the Chairperson, whole-time members, or officers not below the rank of Executive Director to constitute the committee.
• The DC rejected the objection that documents were not supplied, stating that the SCN included annexures with the investigation report, sale certificate, and relevant CBDT information.
• The DC found that Shri Kannan Tiruvengadam conducted a private sale of the corporate debtor as a going concern and issued a sale certificate to Rimjhim Ispat Limited on 18.11.2021.
• The DC noted that while the 4th SCC meeting (07.09.2021) discussed the possibility of a private sale, the 5th SCC meeting (14.03.2022) did not record deliberations on the private sale actually conducted.

Also in the document

• The DC stated that the repeated non-appearance of the Insolvency Professional strikes at the foundation of his 'fit and proper' status, which is a continuous statutory obligation.
• The DC observed that raising a jurisdictional objection based on the pre-amendment Section 220(1) reflects a failure to keep abreast with developments in the IBC ecosystem.
• The DC proceeded to decide the matter on merits despite the professional's non-appearance, citing principles of natural justice.