# CA V.Venkata Sivakumar Vs. IBBI & Ors., W.P.No.13229 of 2020.

> HC judgment dated 2020-11-03. Citation: TCN-2020-HC-00006. The writ petition challenges the constitutional validity of Regulation 7A of the Insolvency and…

- **Court:** HC
- **Order date:** 3 Nov 2020
- **Citation:** TCN-2020-HC-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ca-vvenkata-sivakumar-vs-ibbi-ors-wpno13229-of-2020-072c2be5

## Summary

### Background

The writ petition challenges the constitutional validity of Regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (the IP Regulations) read with Bye-Law 12A of the Insolvency and Bankruptcy Board of India (IBBI) (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (Model Bye-Laws IPA Regulations). The petitioner, a practicing chartered accountant and insolvency professional, applied for authorization for assignment (AFA) which was rejected. The rejection was based on the grounds of non-payment of requisite fees and instances of non-filling up of Corporate Insolvency Resolution Process (CIRP) forms. The petitioner's appeal to the Membership Committee of IIIPI is pending. A show

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## Facts

The petitioner, a chartered accountant and insolvency professional (IP), challenged the constitutional validity of Regulation 7A of the Insolvency and Bankruptcy Board of India (IBBI) (Insolvency Professionals) Regulations, 2016, read with Bye-Law 12A of the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. The petitioner's application for Authorization for Assignment (AFA) was rejected on 14.01.2020, primarily because of non-payment of the requisite fee and instances of non-filling up of Corporate Insolvency Resolution Process (CIRP) forms. The petitioner's appeal to the Membership Committee of IIIPI is still pending. The petitioner argued that the requirement of obtaining an AFA is akin to requiring an advocate enrolled

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## Issues and analysis

### Issue 1: Whether Regulation 7A of the IP Regulations and Regulation 12A of the Model Bye-Laws IPA …

**Ratio:** The IBBI is empowered to specify minimum eligibility requirements for registration of

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**Reasoning:** The court found that the regulations were framed under the power conferred by Sections

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**Interpretation:** The court interpreted the relevant sections of the IBC to determine the extent

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**Application:** The court applied the legal principles to the specific regulations in question,

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## Parties

- **Judges:** A.P.S…; Senthilkumar…
- **Appellants:** CA V.Venkata…
- **Respondents:** Mr.Susanta Kumar…
- **Other parties:** 7th Edition…; Authorisation for…; +5 more
- **Advocates:** R.Sankarana…; C.V.Ramachandramoo…

## Timeline

- **2019-07-23 — Notification of…**: Regulation 7A was introduced in the IP Regulations by Notification No. 20/GN/REG045,…
- **2019-12-31 — Petitioner's AFA…**: The Petitioner applied for an AFA in terms…

## 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)

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