# In the matter of Bhupesh Gupta V/s Insolvency And Bankruptcy Board of India and Ors. CWP-13004-2022

> HC judgment dated 2022-06-02. Citation: TCN-2022-HC-00040. The case involves a challenge to an order passed by the Chairperson of respondent No. 1, acting as…

- **Court:** HC
- **Order date:** 2 Jun 2022
- **Citation:** TCN-2022-HC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/bhupesh-gupta-vs-insolvency-and-bankruptcy-board-of-india-and-ors-cwp-13004-2022-10bc0369

## Summary

### Background

The case involves a challenge to an order passed by the Chairperson of respondent No. 1, acting as a Disciplinary Committee under Section 220(2) of the Insolvency and Bankruptcy Code (IBC). The petitioner contends that the Chairperson of respondent No. 1 cannot constitute the Disciplinary Committee because, according to the proviso to sub-section (1) of Section 220 of the IBC, the Disciplinary Committee should consist only of whole-time members of respondent No. 1. The petitioner argues that there is an inherent lack of jurisdiction for the Chairperson of respondent No. 1 to act as a Disciplinary Committee, warranting interference with the impugned order.

## Facts

The Chairperson of respondent No. 1 passed an order on 10.05.2022, acting as a Disciplinary Committee under Section 220(2) of the IBC. The petitioner contends that this action is invalid because the Disciplinary Committee should only consist of whole-time members of respondent No. 1, as per the proviso to sub-section (1) of Section 220 of the IBC. The petitioner argues that the Chairperson lacks the jurisdiction to act as a Disciplinary Committee. The respondent argues that the petitioner did not raise this objection during the initial hearing. The court notes that respondent No.1-Board has three whole time members and others as specified in Section 189 of the IBC.

## Issues and analysis

### Issue 1: Whether the Chairperson of respondent No. 1 can act as a Disciplinary Committee under Section …

**Ratio:** The proviso to sub-section (1) of Section 220 of the IBC specifies that the Disciplinary

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**Reasoning:** The court reasons that the exercise of disciplinary jurisdiction by respondent No. 2

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**Interpretation:** Section 220 of the IBC outlines the powers and functions of the IBBI, including

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**Application:** The court applies the ratio to the facts by noting that if the Chairperson is

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## Parties

- **Judges:** M.S.Ramachandra…; H.S. Ma…
- **Appellants:** Bhupesh…
- **Respondents:** Insolvency and…

## Timeline

- **2022-05-10 — Impugned…**: The Chairperson of respondent No. 1 passed the impugned order, acting as a Disciplinary…
- **2022-06-02 — Court Or…**: The court ordered an interim suspension of the order dated 10.05.2022 passed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 220 — Appointment of disciplinary committee](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-220)

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