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N. SESHASAYEE
Ad. (CA) V. Venkata Siva Kumar – Appellant
Versus
Insolvency and Bankruptcy Board of India (IBBI), Represented by Mr. Rajesh Kumar, General Manager – Respondent
ORDER :
(Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for a Writ of Certiorarified Mandamus calling for the records of the decision of the first respondent in the impugned order File No. COMP-11015/8/2023-IBBI/766/783 dated 03.07.2023 and quash the same as being arbitrary, illegal and violative of Art.14, 19, 2o(2), and 21 and pass a consequential order awarding exemplary damages to be paid to the legal aid.)
The petitioner herein is a Resolution Professional, and the Insolvency and Bankruptcy Board of India (in short IBBI) vide its proceedings dated 03.07.2023 issued a show-cause notice on him under Section 219 of the Insolvency and Bankruptcy Code, 2016 (in short IBC), r/w Regulations 11 and 12 of IBBI (Inspection and Investigation) Regulations, 2017. By virtue of this show-cause notice, the Authorization For Assignment (AFA) of the Resolution Professional concerned will stand automatically suspended under Regulation 23A of the Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations, 2016.
1.2. The pointed allegation made against the petitioner in the show cause notice is that the petitioner was appointed as the liqu
The main legal point established in the judgment is the jurisdiction of the Insolvency and Bankruptcy Board of India (IBBI) to initiate disciplinary action under the Insolvency and Bankruptcy Code, 2....
The court upheld the suspension of a Resolution Professional for one year due to lack of due diligence and failure to communicate claims, affirming the Disciplinary Committee's authority under the In....
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.
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.
A review petition under Section 114 CPC must show an error apparent on record; the court affirmed the original order without finding grounds for alteration or fraud.
The court ruled that operational creditors' claims must be disclosed in the resolution plan under the IBC, and failure to do so does not extinguish their rights, emphasizing the need for transparency....
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