# CA Venkata Siva Kumar Vs Insolvency and Bankruptcy Board of India & Ors. WP No. 9132 -2020 and WMP No 11134-2020

> HC judgment dated 2020-07-28. Citation: TCN-2020-HC-00023. The case involves a writ petition filed by a chartered accountant and insolvency professional (IP)…

- **Court:** HC
- **Order date:** 28 Jul 2020
- **Citation:** TCN-2020-HC-00023
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ca-venkata-siva-kumar-vs-insolvency-and-bankruptcy-board-of-india-ors-wp-no-9132-f8bd6ff0

## Summary

### Background

The case involves a writ petition filed by a chartered accountant and insolvency professional (IP) challenging a circular issued by the Insolvency and Bankruptcy Board of India (IBBI). The circular pertains to regulations requiring IPs to pay a fee calculated as a percentage of their professional fees or turnover. The petitioner contends that these regulations are ultra vires Section 196 of the Insolvency and Bankruptcy Code (IBC) and violate Articles 14, 19, and 21 of the Constitution of India. The petitioner also argues that there is no quid pro quo for the fees being charged and that the regulations involve excessive delegation of power.

## Facts

CA. Venkata Siva Kumar, a chartered accountant and registered insolvency professional (IP), filed a writ petition challenging the validity of certain regulations issued by the Insolvency and Bankruptcy Board of India (IBBI). These regulations, specifically Regulation 7(2)(ca) and 13(2)(ca) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, require IPs and Insolvency Professional Entities (IPEs) to pay a fee calculated as 0.25% of their professional fees or turnover. The petitioner argued that these regulations are ultra vires Section 196 of the Insolvency and Bankruptcy Code (IBC), violate Articles 14, 19, and 21 of the Constitution of India, lack quid pro quo, and involve excessive delegation. The petitioner had previously

…

## Issues and analysis

### Issue 1: Whether the IBBI has the power under the IBC to levy fees on IPs and IPEs based on a percentage of …

**Ratio:** The power to levy fees on IPs is conferred on the IBBI under Sections 196 and 207 of the

…

**Reasoning:** The court reasoned that Sections 196, 207, and 240 of the IBC expressly empower the IBBI

…

**Interpretation:** The court interpreted the relevant sections of the IBC as granting broad powers

…

**Application:** The court applied the ratio to the facts by finding that the IBBI's regulations

…

## Parties

- **Judges:** A.P.S…; Senthilkumar…
- **Appellants:** CA.Venkata Siva…
- **Respondents:** Insolvency and…
- **Other parties:** 7th Edition…; Regulator…; +9 more

## Timeline

- **2017-08-07 — Petitioner obtained IP…**: The Petitioner obtained a certificate of…
- **2018-10-13 — Petitioner's communicati…**: The Petitioner stated that the charging of fees based on a percentage of the RP's…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 196 — Powers and functions of Board](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-196)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ca-venkata-siva-kumar-vs-insolvency-and-bankruptcy-board-of-india-ors-wp-no-9132-f8bd6ff0