# IBBI Vs. State Bank of India & Ors., W.P.(C) 10189/2018 & CM APPL. 39715/2018

> HC judgment dated 2022-11-28. Citation: TCN-2022-HC-00015. The Insolvency and Bankruptcy Board of India (IBBI) filed a writ petition challenging an order…

- **Court:** HC
- **Order date:** 28 Nov 2022
- **Citation:** TCN-2022-HC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ibbi-vs-state-bank-of-india-ors-wp-5ea0e66c

## Summary

### Background

The Insolvency and Bankruptcy Board of India (IBBI) filed a writ petition challenging an order passed by the National Company Law Tribunal (NCLT). The NCLT order declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”). Regulation 36A pertains to the invitation of resolution plans. The NCLT reasoned that Regulation 36A, which involves inviting expressions of interest, was contrary to the speedy disposal of the resolution process, a key feature of the IBC. The NCLT's decision was based on the premise that inviting expressions of interest retards the resolution process and wastes time.

## Facts

The Insolvency and Bankruptcy Board of India (IBBI) challenged an order by the National Company Law Tribunal (NCLT) that declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code (IBC). Regulation 36A concerns the invitation of resolution plans, involving an 'expression of interest' stage. The NCLT, in an application for extension of the Corporate Insolvency Resolution Process (CIRP) filed by State Bank of India (SBI), found that Regulation 36A was contrary to the IBC's objective of speedy resolution. The NCLT noted that inviting expressions of interest before resolution plans would delay the process. The IBBI argued

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal (NCLT) has the jurisdiction and power to declare …

**Ratio:** The NCLT, being a creature of the IBC, cannot assume the power to declare any provisions

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**Reasoning:** The High Court reasoned that the NCLT's jurisdiction is limited to the categories of

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**Interpretation:** Section 60 of the IBC defines the scope of the NCLT's powers, which are

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**Application:** In this specific case, the NCLT, while considering an application for extension

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## Parties

- **Judges:** PRATHIBA M.…
- **Appellants:** Insolvency and…
- **Respondents:** Su Kam Power…; State Bank of…
- **Other parties:** 7th Edition…; patently without…; +1 more

## Timeline

- **2018-09-05 — NCLT Ord…**: The NCLT passed an order declaring Regulation 36A of the IBBI Regulations as ultra vires…
- **2018-09-26 — High Court…**: The High Court directed that the impugned order passed by the NCLT shall not come in the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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