# In the matter of Poonam Basak vs. Union of India & Ors.

> HC judgment dated 2023-08-31. Citation: TCN-2023-HC-00039. The Writ Petition challenges an order dated August 11, 2023, passed by the Disciplinary Committee…

- **Court:** HC
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-HC-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/poonam-basak-vs-union-of-india-ors-0bc3537d

## Summary

### Background

The Writ Petition challenges an order dated August 11, 2023, passed by the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI). It also raises a constitutional challenge to Sections 7(5), 9(5), and other provisions of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016), alleging they are arbitrary, illegal, and ultra vires the Constitution of India.

## Facts

Poonam Basak filed a Writ Petition challenging an order passed by the Disciplinary Committee of the IBBI. The petitioner also challenged the constitutional validity of Sections 7(5) and 9(5) of the IBC. The petitioner argued that the order was passed by the Chairperson of IBBI, who is not a Whole Time Member, and therefore lacked jurisdiction. The respondent, IBBI, argued that the Chairperson is a de-facto Whole Time Member. The court examined Section 189 and Section 220 of the IBC, as well as the IBBI's General Order, to determine whether the Chairperson could be considered a Whole Time Member. The court found that the Chairperson is a separate category from a Whole-Time Member and granted ad interim relief, staying the impugned order.

## Issues and analysis

### Issue 1: Whether the impugned order passed by the Chairperson of IBBI is without jurisdiction because the …

**Ratio:** Section 220(1) of the IBC stipulates that the Disciplinary Committee shall consist of

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**Reasoning:** The court reasoned that Section 189 of the IBC establishes distinct categories of members

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**Interpretation:** The court interpreted Section 189 and Section 220 of the IBC, along with the

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**Application:** Since the impugned order was passed by the Chairperson, who is not a Whole Time

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## Parties

- **Judges:** B. P. COLAB…; M.M. SA…
- **Appellants:** Poonam…
- **Respondents:** Union of…
- **Other parties:** Kohi…

## Timeline

- **2023-08-11 — Impugned Ord…**: Date of the order passed by the Disciplinary Committee of the IBBI, which is being…
- **2023-08-31 — Order Da…**: Date of the order passed by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7(5) — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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