# In the matter of Naren Sheth vs. The Union of India & Ors.

> HC judgment dated 2024-10-25. Citation: TCN-2024-HC-00015. The writ petition challenges an order dated 30th January 2024, passed by the Disciplinary Committee…

- **Court:** HC
- **Order date:** 25 Oct 2024
- **Citation:** TCN-2024-HC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/naren-sheth-vs-the-union-of-india-ors-498a25a2

## Summary

### Background

The writ petition challenges an order dated 30th January 2024, passed by the Disciplinary Committee (DC) of the Insolvency and Bankruptcy Board of India (IBBI), which suspended the petitioner's registration as an Insolvency Professional for two years. The suspension was based on alleged violations in the conduct of an e-auction while the petitioner was acting as a Liquidator in the Corporate Insolvency Resolution Process (CIRP) of Ciemme Jewels Ltd. (CJL) and as an Interim Resolution Professional (IRP) in the CIRP of Dhanlaxmi Electricals Pvt. Ltd. (DEPL). The IBBI initiated an investigation, and a show cause notice was issued to the petitioner. The NCLT had previously set aside the e-auction conducted by the petitioner in the CJL matter, directing a fresh auction and

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## Facts

Naren Sheth, an Insolvency Professional, was appointed as Resolution Professional (RP) in proceedings initiated under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Vijisan Exports Pvt. Ltd. for Ciemme Jewels Ltd. (CJL). The NCLT ordered the liquidation of CJL and appointed Sheth as Liquidator. Another application under Section 9 was filed by Central Investigation and Security Services Ltd. for Dhanlaxmi Electricals Pvt. Ltd. (DEPL), and Sheth was appointed as Interim Resolution Professional (IRP). The IBBI appointed an Investigating Authority to investigate the liquidation proceedings of CJL and the CIRP proceedings of DEPL. A show cause notice was issued to Sheth based on the investigation's findings. The NCLT set aside an e-auction conducted by Sheth as

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## Issues and analysis

### Issue 1: Whether the Disciplinary Committee was justified in suspending the petitioner's registration as an …

**Ratio:** The Disciplinary Committee has the authority to take action against an Insolvency

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**Reasoning:** The court found that the petitioner was given due opportunity to respond to the show

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**Interpretation:** The court interpreted the powers of the Disciplinary Committee under the

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

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## Parties

- **Judges:** ATUL S. CHA…; Rajesh S.…
- **Appellants:** Naren S…
- **Respondents:** Ciemme Jewe…; The Union o…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2019-03-25 — NCLT Order for…**: The National Company Law Tribunal (NCLT) passed an order for the liquidation of Ciemme…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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