Judgment Summaries (High Court) Dr. Vidya Sagar Garg v. Insolvency and Bankruptcy Board of India

  March 3, 2022

Dr. Vidya Sagar Garg v. Insolvency and Bankruptcy Board of India

W.P. (C) 9520/2017, CM APPL.38726-38727/2017

High Court of Delhi, Decided on 05.02.2018

 

This petition challenged an order of the Insolvency and Bankruptcy Board of India (‘IBBI’) rejecting the petitioner’s application seeking registration as an Insolvency Professional (‘IP’) under Regulation 6 of the IBBI (IP) Regulations, 2016 on the ground that the petitioner was not a ‘fit and proper person’ as per Regulation 4(g)(i).

 

Pre-mature petition against the IBBI’s order

IBBI’s rejection of the petitioner’s application on ground of the petitioner being not a ‘fit and proper person’ under Regulation 4(g)(i) was motivated by the fact that an FIR was registered against the petitioner in which a chargesheet was also filed back in 2014.

The petitioner argued that as per the FIR/chargesheet, the petitioner did not have any role in those offences, accordingly, he had filed a discharge application back in 2016 before the concerned trial court, which was pending adjudication. However, the respondent, IBBI, argued that it was correct in rejecting the petitioner’s application at the stage when the discharge application was still pending. It further said that it would be willing to consider the petitioner’s application afresh if the trial court allows the discharge application.

Accepting the contentions of the IBBI, the court held that the present petition was pre-mature and hence, dismissed the same. It also gave the petitioner the liberty to approach the court after the disposal of the discharge application.

 

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