# In the matter of Pooja Mengha vs. Insolvency and Bankruptcy Board of India & Anr.

> HC judgment dated 2023-11-20. Citation: TCN-2023-HC-00015. Pooja Menghani filed a writ petition challenging the order dated 02.05.2022 passed by the…

- **Court:** HC
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-HC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/pooja-mengha-vs-insolvency-and-bankruptcy-board-of-india-anr-c0a6471d

## Summary

### Background

Pooja Menghani filed a writ petition challenging the order dated 02.05.2022 passed by the Insolvency and Bankruptcy Board of India (IBBI) rejecting her application for registration as a Resolution Professional. The rejection was based on allegations of violating SEBI regulations in 2003, leading to penalties and legal proceedings that reached the Supreme Court. Despite paying the penalty, IBBI deemed her unfit due to the serious nature of the allegations and the important role of an Insolvency Professional.

## Facts

Pooja Menghani, a banker by profession, applied to be registered as an Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 (IBC) with the Insolvency and Bankruptcy Board of India (IBBI). Her application was rejected by the IBBI on 02.05.2022 on the grounds that she was not a fit and proper person to be appointed as an Insolvency Professional. This rejection stemmed from allegations of violating Regulation 3(a), 3(b), 3(c), 3(d), and 4(1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. Specifically, it was alleged that she engaged in front running by buying and selling equal quantities of shares in large volumes in four scrips with prior knowledge of pending buy orders. A penalty of

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## Issues and analysis

### Issue 1: Whether the Insolvency and Bankruptcy Board of India (IBBI) was justified in rejecting the …

**Ratio:** The ratio is that the IBBI has the discretion to determine whether a person is fit and

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**Reasoning:** The court reasoned that an Insolvency Professional holds a very important position and

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**Interpretation:** The court interpreted that the IBBI's power to determine fitness and propriety

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** Subramonium…
- **Appellants:** Pooja Men…
- **Respondents:** Insolvency and…
- **Other parties:** Kohi…

## Timeline

- **2003-01-01 — SEBI Regulations…**: Allegations against the Petitioner for violation of SEBI regulations related to…
- **2014-01-01 — Civil Appeal to Apex…**: Petitioner filed Civil Appeal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 206 — Enrolled and registered persons to act as…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-206)

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