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SANJAY V. GANGAPURWALA, D. BHARATHA CHAKRAVARTHY
CA V. Venkata Sivakumar – Appellant
Versus
Insolvency and Bankruptcy Board of India(IBBI) Represented by Deputy General Manager, 7th Floor, Mayur Bhawan, Shankar Market Connaught Circus, New Delhi – Respondent
JUDGMENT
(Prayer in W.P.No.16650 of 2020 : Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Declaration that the provisions of Chapter III of the Insolvency and Bankruptcy Code, 2016, more particularly, Section 204 (a) (b) (c) (d) and (e) of the Act, as ultra vires, the provisions of Article 14, 19 (1) (g) and 21 of the Constitution, manifestly arbitrary, substantively unreasonable, excessive legislation and repugnant to the objectives of Insolvency and Bankruptcy Code, 2016.
In W.P.No.14448 of 2021 : Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Declaration that the impugned Regulation 23A of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, which was subsequently amended by the 2nd respondent vide Notification No.IBBI/2016-17/GN/REG0001 dated 23.07.2019 as ultra vires the Constitution and consequentially direct the 1st and 2nd respondents to pay the compensation for the financial loss and mental agony suffered by the petitioner which may be paid to Tamil Nadu “Chief Minister's Public Relie
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 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.
Rules and regulations which are framed by Central Government or IBBI are to be placed before Parliament in terms of Section 241 of IBC.
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 court emphasized that disciplinary penalties must be proportionate to the misconduct and factors such as prior penalties and delays in proceedings must be considered.
Resolution Professionals must ensure strict compliance with the Insolvency and Bankruptcy Code, as failure to do so justifies suspension of their registration.
The Court does not interfere with the findings of a fact-finding body if the process adopted in the enquiry is fair, reasonable, and transparent.
The court upheld the constitutional validity of Sections 95 to 100 of the IBC, affirming the role of the resolution professional as facilitators, and emphasized the necessity of adhering to natural j....
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