IBBI cites technical error in Palande's failure to upload creditor list

It matters to citizens as it details regulatory findings on the verification of creditor claims and the professional obligations of insolvency practitioners.

Who it concerns: Mr. Jitendra Palande (Insolvency Professional/Liquidator), Forever Entertainment Private Limited (Corporate Debtor), Sattvam Ventures Pvt. Ltd. (Creditor), and the Insolvency and Bankruptcy Board of India (IBBI).

What the Board found or ordered

• The Disciplinary Committee found that Mr. Palande failed to exercise reasonable care and due diligence in verifying the claim of Sattvam Ventures Pvt. Ltd., which was initially admitted at Rs. 20.10 crores and later revised to Rs. 34,72,54,224.
• The Committee found that Mr. Palande failed to timely inform the creditor, the Stakeholder Creditor Committee (SCC), or the Adjudicating Authority (AA) about the revision in the claim and the consequent reduction in voting share from approximately 35% to 4.45%.
• The Committee determined that Mr. Palande contravened Clauses 13 and 14 of the Code of Conduct for Insolvency Professionals.
• The Committee noted that the intimation of the claim reduction to the creditor was made on 20.07.2025, which was after the filing of the complaint to the Board.
• The Committee observed that no auditor report was placed on record by Mr. Palande to support the reduction of the creditor's voting share.

Also in the document

• Mr. Palande submitted that he engaged an independent Chartered Accountant for verification and that the revised claim position was communicated to the creditor on 20.07.2025.
• Mr. Palande claimed that he made continuous attempts to upload the modified list of stakeholders on the IBBI website but encountered a technical error.
• The Committee noted that Mr. Palande relied on an AA order dated 30.01.2024 from a different case (Saturn Rings and Forgings Private Limited) as the trigger for re-verification, but no communication regarding the reduction was made to the creditor prior to July 2025.