The High Court dismissed the petition challenging the order of ...

Insolvency Professional's registration suspended for 2 years by IBBI upheld by Court for asset mismanagement, record non-transfer.

Case Laws     IBC

September 11, 2024

The High Court dismissed the petition challenging the order of the Insolvency and Bankruptcy Board of India (IBBI) suspending the registration of the petitioner as an Insolvency Professional for two years. The court held that the contention of the petitioner regarding the improper constitution of the Disciplinary Committee was untenable. The IBBI was within its authority to investigate and take action against the petitioner for misconduct, irrespective of separate proceedings before the Adjudicating Authority. The material on record showed the petitioner's failure to preserve the assets, hand over records to the liquidator, and prevent unauthorized transfers, violating provisions of the Insolvency and Bankruptcy Code (IBC) and regulations. The court reiterated the limited scope of judicial review in commercial and technical matters, emphasizing restraint unless arbitrariness, unreasonableness, mala fide, bias, or irrationality is clearly established. The court found no reason to interfere with the IBBI's order, which followed due procedure.

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