HC upholds disciplinary committee’s suspension of RP for using ‘IBBI’ in firm name
- News|Blog|Insolvency and Bankruptcy Code|
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- Last Updated on 15 February, 2023
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Case Details: Kapil Goel v. Insolvency and Bankruptcy Board of India - [2023] 146 taxmann.com 554 (Delhi)
Judiciary and Counsel Details
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- Prathiba M. Singh, J.
- Vikas Mehta & Apoorv Khator, Advs. for the Respondent.
Facts of the Case
In the present case, the Petitioner Resolution Professional (RP) had incorporated a partnership firm named ‘IBBI Insolvency Practitioners LLP’. Considering that RP had used the name ‘IBBI’ in the firm’s name, a show cause notice was issued to RP. The Disciplinary Committee observed that RP’s conduct was in violation of section 208, read with regulations 7(2)(a) and 7(2)(b).
The RP was directed not to take any new assignment until ‘IBBI Insolvency Practitioners LLP’ was removed from the Register of Companies by the Ministry of Corporate Affairs (MCA) and suspended RP’s registration as an insolvency professional for three months from the date of issue of order.
Consequently, the present writ petition was filed challenging the order passed by the Disciplinary Committee. Notice was issued in this writ petition on 8th October 2018. However, it was noticed that none appeared for the RP.
High Court Held
Hon’ble High Court observed that the RP could not have used the name IBBI for his own private entity which would amount to misleading the trade and industry, as well as the stakeholders involved in resolution and insolvency processes.
Hon’ble High Court held that the Disciplinary Committee’s view does not deserve to be interfered with. The order has also already been given effect to by the MCA and the RP’s suspension period of three months as directed by the impugned order had already come to an end.
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