# In the matter of Kairav Anil Trivedi vs. Insolvency and Bankruptcy Board of India & Ors.

> HC judgment dated 2024-08-09. Citation: TCN-2024-HC-00049. The writ petition challenges show cause notices issued by the Insolvency & Bankruptcy Board of…

- **Court:** HC
- **Order date:** 9 Aug 2024
- **Citation:** TCN-2024-HC-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/kairav-anil-trivedi-vs-insolvency-and-bankruptcy-board-of-india-ors-d4dcb42b

## Summary

### Background

The writ petition challenges show cause notices issued by the Insolvency & Bankruptcy Board of India (IBBI) to the petitioner, an Insolvency Professional (IP), for alleged violations under the Insolvency and Bankruptcy Code, 2016. The petitioner also challenges the suspension of his Authorization for Assignment (AFA) and the validity of Clause 23A of the IBBI's Model Bye-Laws and the ICSI Institute of Insolvency Professionals' Bye-Laws, arguing they are ultra vires.

## Facts

The petitioner, an Insolvency Professional (IP) registered with the Insolvency & Bankruptcy Board of India (IBBI), received show cause notices from the IBBI dated 26th October 2023 and 10th April 2024. These notices proposed action against him for violations under the Insolvency and Bankruptcy Code, 2016. The IBBI initiated these actions based on investigation reports. The petitioner's Authorization for Assignment (AFA) was suspended following the issuance of the show cause notices. The petitioner contends that the show cause notices were issued without jurisdiction, challenging the validity of Clause 23A of the IBBI's Model Bye-Laws and the ICSI Institute of Insolvency Professionals' Bye-Laws, arguing they are ultra vires. The IBBI argued that the show cause

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## Issues and analysis

### Issue 1: Whether the show cause notices issued by the IBBI to the petitioner are valid and suffer from any …

**Ratio:** The power to issue show cause notices is derived from the IBBI's authority to make

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**Reasoning:** The court found that the show cause notices were preceded by investigation reports and

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**Interpretation:** The court interpreted the relevant provisions of the Code to mean that the IBBI

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**Application:** The court applied the ratio to the facts of the case, finding that the IBBI had

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## Parties

- **Judges:** ATUL S. CHA…; Rajesh S.…
- **Appellants:** Irav Anil T…
- **Respondents:** INSOLVENCY AND…
- **Other parties:** Kohi…

## Timeline

- **2023-10-26 — Show Cause Noti…**: IBBI issued a show cause…
- **2024-04-10 — Second Show Cause…**: IBBI issued another show…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 217 — Complaints against insolvency professional agency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-217)

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