# In the matter of CA V.Venkata Sivakumar vs. Insolvency and Bankruptcy Board of India

> HC judgment dated 2024-01-22. Citation: TCN-2024-HC-00133. The petitioner, an Insolvency Professional, filed two writ petitions challenging the constitutional…

- **Court:** HC
- **Order date:** 22 Jan 2024
- **Citation:** TCN-2024-HC-00133
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ca-vvenkata-sivakumar-vs-insolvency-and-bankruptcy-board-of-india-1e4ae760

## Summary

### Background

The petitioner, an Insolvency Professional, filed two writ petitions challenging the constitutional validity of Chapter III and Section 204 of the Insolvency and Bankruptcy Code, 2016, and Regulation 23A of the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. The petitioner also sought compensation for financial loss and mental agony.

## Facts

The petitioner, a practicing Chartered Accountant for 30 years and an Insolvency Professional since 2018, challenged the constitutional validity of Chapter III and Section 204 of the Insolvency and Bankruptcy Code, 2016 (IBC). He also challenged Regulation 23A of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. The petitioner sought a declaration that these provisions were ultra vires the Constitution, manifestly arbitrary, and substantively unreasonable. The petitioner's application for Authorisation for Assignment (AFA) was rejected by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) on January 14, 2020, and again on August 25, 2020. He had previously challenged

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## Issues and analysis

### Issue 1: Whether Regulation 23A of the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional …

**Ratio:** The constitutional validity of Regulation 23A was upheld. The court held that ad-interim

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**Reasoning:** The court reasoned that Regulation 23A provides for an ad-interim suspension of AFA upon

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**Interpretation:** The court interpreted Regulation 23A as an ad-interim measure, distinct from a

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**Application:** The court applied this interpretation to the petitioner's case, concluding that

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## Parties

- **Judges:** Sanjay V.Gangapurw…; D.BHARATHA…
- **Appellants:** CA V. VENKATA…; CA V.Venkata…
- **Respondents:** INSOLVENCY AND…; Insolv…; +6 more
- **Advocates:** For the petitioner…; P-in…; +10 more

## Timeline

- **December 31, 2019 — Application…**: The petitioner made an application for…
- **January 14, 2020 — First AFA Application…**: The petitioner's application for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 204(a) — Functions of insolvency professional agencies](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-204)

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