# In the matter of HNG Industries Thozhilalar Nala Sangam vs. Insolvency and Bankruptcy Board of India & Ors.

> HC judgment dated 2025-03-12. Citation: TCN-2025-HC-00031. The petitioner, HNG Industries THOZHILALAR NALA SANGAM, filed a writ petition (W.P.(C) 3065/2025)…

- **Court:** HC
- **Order date:** 12 Mar 2025
- **Citation:** TCN-2025-HC-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/hng-industries-thozhilalar-nala-sangam-vs-insolvency-and-bankruptcy-board-of-ind-f15524b3

## Summary

### Background

The petitioner, HNG Industries THOZHILALAR NALA SANGAM, filed a writ petition (W.P.(C) 3065/2025) in the High Court of Delhi at New Delhi, challenging a communication dated 30.01.2025 issued by the Insolvency and Bankruptcy Board of India (IBBI). The communication directed disciplinary proceedings against the Insolvency Professional (IP) under section 219 of the Insolvency and Bankruptcy Code, 2016, and suspended the Authorization for Assignment (AFA) issued to the IP.

## Facts

HNG Industries THOZHILALAR NALA SANGAM filed a petition challenging a communication from the Insolvency and Bankruptcy Board of India (IBBI). The IBBI's communication, dated 30.01.2025, initiated disciplinary proceedings against an Insolvency Professional (IP) and suspended their Authorization for Assignment (AFA). The petitioner argued that the suspension of the AFA should not prevent the IP from continuing with existing assignments as a Resolution Professional (RP) in a Corporate Insolvency Resolution Process (CIRP). The petitioner cited the Bombay High Court's judgment in Kairav Anil Trivedi vs. IBBI & Ors. The IBBI clarified that the suspension only applied to new assignments. Based on this clarification, the petitioner withdrew the petition, which was then

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## Issues and analysis

### Issue 1: Whether the suspension of an Authorization for Assignment (AFA) issued to an Insolvency …

**Ratio:** The ratio is based on the interpretation of the IBBI's regulations and the Bombay High

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**Reasoning:** The court's reasoning is based on the statement made by the IBBI's counsel, who clarified

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**Interpretation:** The legal issue revolves around the scope of the suspension of an AFA. The

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**Application:** In this specific case, the IBBI's clarification that the suspension only

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## Parties

- **Judges:** SACHIN…
- **Appellants:** HNG INDUSTRIES…
- **Respondents:** INSOLVENCY AND…
- **Other parties:** Kohi…

## Timeline

- **2025-01-30 — IBBI Commun…**: The Insolvency and Bankruptcy Board of India (IBBI) issued a communication directing…
- **2025-03-12 — Order Da…**: The High Court dismissed the petition as withdrawn after the IBBI clarified the scope of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 219 — Show cause notice to insolvency professional…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-219)

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