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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S.CHANDURKAR, RAJESH S.PATIL
Rohit J.Vora – Appellant
Versus
Insolvency and Bankruptcy Board of India, New Delhi – Respondent
JUDGMENT :
A.S. CHANDURKAR, J.
1. Rule. Rule made returnable forthwith and heard learned counsel for the parties.
2. The challenge raised in this writ petition filed under Article 226 of the Constitution of India is to the order dated 3rd July 2023 passed by the Disciplinary Committee consisting of a whole-time member of the Insolvency and Bankruptcy Board of India. By the said order, the show cause notice under Section 220 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 13 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017, dated 16th May 2023, issued to the petitioner as an Insolvency Professional has been adjudicated and the petitioner’s registration has been suspended for a period of one year from the date of the order.
3. Bereft of unnecessary details, it may be stated that the petitioner came to be appointed as an Insolvency Professional – IP by the Insolvency and Bankruptcy Board of India – IBBI. On the basis of an investigation report submitted by the Investigating Authority, the IBBI through its Deputy General Manager issued a show cause notice to the petitioner under Section 219 of the Insolvency and Bankruptcy C
A Disciplinary Committee under Section 220 of the Insolvency and Bankruptcy Code can be constituted with a single whole-time member without violating statutory provisions.
The main legal point established in the judgment is that Regulation 23A and Section 204 (a) (b) (c) (d) and (e) of the Insolvency and Bankruptcy Code, 2016, were found to be constitutional and not vi....
The court emphasized that disciplinary penalties must be proportionate to the misconduct and factors such as prior penalties and delays in proceedings must be considered.
The Council must independently assess findings from a Disciplinary Committee regarding professional misconduct, ensuring proper application of mind and consideration of all representations before mak....
The final decision on the action against the petitioner is appealable to the Authority under Section 22G, and the court provided interim protection for the petitioner to approach the Appellate Author....
The court affirmed that the IBBI's issuance of show cause notices and the suspension of the Authorization for Assignment were valid under the Insolvency and Bankruptcy Code, 2016 and its regulations.
Disciplinary processes must follow legislative intent; premature challenges to procedural decisions of a quasi-judicial body are not permissible.
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