# In the matter of Rishi Prakash Vats Vs. Insolvency and Bankruptcy Board of India and Anr. W.P. (C) 10093-2019, CM Appl Nos. 41730 & 41731-2019

> HC judgment dated 2019-09-18. Citation: TCN-2019-HC-00011. The petitioner, Rishi Prakash Vats, filed a writ petition challenging a disciplinary enquiry…

- **Court:** HC
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-HC-00011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/rishi-prakash-vats-vs-insolvency-and-bankruptcy-board-of-india-and-anr-wp-5d8a4d97

## Summary

### Background

The petitioner, Rishi Prakash Vats, filed a writ petition challenging a disciplinary enquiry initiated against him. The disciplinary enquiry stemmed from observations made in an order by the National Company Law Tribunal (NCLT) dated April 26, 2018, in a matter involving Punjab National Bank (Financial Creditor) and Rana Global Limited (Corporate Debtor). The petitioner sought expungement of adverse remarks, which was initially granted by the NCLT on September 17, 2018. However, the disciplinary proceedings continued, leading to further applications before the NCLT. The NCLAT, in an order dated July 11, 2019, addressed the matter, and despite this, the respondents passed an Impugned Order dated August 21, 2019, finding the petitioner guilty and imposing punishment.

## Facts

Rishi Prakash Vats, the petitioner, faced a disciplinary enquiry initiated based on observations in an NCLT order dated 2018-04-26 concerning Punjab National Bank vs. Rana Global Limited. The petitioner sought to expunge adverse remarks, which the NCLT granted on 2018-09-17. Despite this, disciplinary proceedings continued, leading to another application before the NCLT. The NCLT extended the time for CIRP proceedings and excluded the period from 2018-03-23 to 2018-04-16. Respondent no. 1 sought a review of the NCLT's orders. The NCLT directed the disciplinary proceedings to be quashed on 2019-02-05. Respondent no. 1 challenged this before the NCLAT, which accepted the submission that the direction to quash disciplinary proceedings was incorrect on 2019-07-11. The

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## Issues and analysis

### Issue 1: Whether the respondents could levy a penalty by way of the Impugned Order without having any other …

**Ratio:** The principle is that once adverse remarks forming the basis of disciplinary action are

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**Reasoning:** The court considered the petitioner's argument that the NCLT had expunged the adverse

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**Interpretation:** This involves interpreting the effect of the NCLT's order expunging adverse

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**Application:** The ratio and reasoning apply to the specific facts because the petitioner

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## Parties

- **Judges:** NAVIN C…
- **Appellants:** RISHI PRAKA…
- **Respondents:** Rana Global…; INSOLVENCY AND…

## Timeline

- **2018-04-26 — NCLT Ord…**: NCLT passed an order in the matter of M/s Punjab National Bank vs. M/s Rana Global…
- **2018-09-08 — Show Cause…**: A Show Cause Notice was issued to the petitioner based on the observations made in the…

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