# In the matter of Partha Sarathy Sarkar vs. Insolvency & Bankruptcy Board of India & Ors.

> HC judgment dated 2023-10-17. Citation: TCN-2023-HC-00028. The Civil Writ Petition (L) No.28206 of 2023 was filed in the High Court of Judicature at Bombay by…

- **Court:** HC
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-HC-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/partha-sarathy-sarkar-vs-insolvency-bankruptcy-board-of-india-ors-133bf514

## Summary

### Background

The Civil Writ Petition (L) No.28206 of 2023 was filed in the High Court of Judicature at Bombay by Partha Sarathy Sarkar against the Insolvency & Bankruptcy Board of India (IBBI) & Ors. The petition seeks to quash the order of suspension of registration of the Petitioner, which was issued on September 13, 2023. The main ground for challenging the impugned order is that a show cause notice was not issued to the Petitioner under Section 219 of the Insolvency and Bankruptcy Code, 2016 ('IBC,2016') before the order was passed. The petitioner argues that the Investigating Authority was not appointed by a duly authorized person, as required under Section 218 of the IBC, and that the inspection order was signed by the Assistant General Manager instead of the

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## Facts

Partha Sarathy Sarkar, the petitioner, filed a Civil Writ Petition challenging the order of suspension of his registration as an insolvency professional. The order was issued on September 13, 2023. The petitioner contends that the order is invalid because a show cause notice was not issued under Section 219 of the Insolvency and Bankruptcy Code, 2016. The petitioner also argues that the inspection order, which led to the suspension, was defective because it was signed by the Assistant General Manager of IBBI, not the Executive Director, as required by the relevant regulations. The petitioner relies on Exhibit-'E' to the Petition, which is the Insolvency and Bankruptcy Board of India (Delegation of Powers and Functions) Order, 2017, arguing that it mandates the

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## Issues and analysis

### Issue 1: Whether the order of suspension of registration of the Petitioner is valid, considering the alleged …

**Ratio:** The principle of natural justice requires that a person must be given an opportunity to

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**Reasoning:** The court has not explicitly ruled on this issue but has acknowledged the petitioner's

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**Interpretation:** Section 219 of the IBC is interpreted to mean that a show cause notice is a

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**Application:** If the IBBI failed to issue a show cause notice to the petitioner before

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## Parties

- **Judges:** B. P. COLAB…; M.M. SA…
- **Appellants:** Partha Sarathy…
- **Respondents:** Insolvency and…

## Timeline

- **2023-09-13 — Impugned Ord…**: Date of the order of suspension of…
- **2023-10-31 — IBBI Affidavit-in-Reply…**: Deadline for the IBBI to file its…

## 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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