IBBI – Resolution Professional – Show cause notices & Suspension of Authorization
The show cause notice dated 26.10.2023 was issued to the petitioner on the basis of investigation report. The petitioner replied to the said notice and denied the allegations.
On 10.4.2024, another show cause notice was given as to why action should not be taken against the petitioner. This was based on the investigation report dated 8.3.2024.
With the issuance of the notices, the Authorization for Assignment was suspended. This was challenged in the writ petition.
HELD, while upholding the constitutional validity of Clause 23A in the Schedule to the IBBI (Model Byelaws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, that there is an interim suspension of Authorization pending disciplinary proceedings. The suspension is not penalty. Moreover, suspension on account of operation of Clause 23A of the Byelaws of ICSI Institute of Insolvency Professionals would not bar the petitioner from continuing with pending assignments but it would bar only new assignments pending disposal of show cause notices.
W.P.(L) No.13865 of 2024 of Kairav Anil Trivedi Vs. Insolvency and Bankruptcy Board of India and others
