# In the matter of Sanjay Garg Vs. Insolvency and Bankruptcy Board of India & Anr.

> HC judgment dated 2025-03-07. Citation: TCN-2025-HC-00035. The petition challenges an order dated 2024-12-16 passed by the Insolvency and Bankruptcy Board of…

- **Court:** HC
- **Order date:** 7 Mar 2025
- **Citation:** TCN-2025-HC-00035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/sanjay-garg-vs-insolvency-and-bankruptcy-board-of-india-anr-f902b9f5

## Summary

### Background

The petition challenges an order dated 2024-12-16 passed by the Insolvency and Bankruptcy Board of India (IBBI), where the Disciplinary Committee (DC) issued directions, including reinvestigation of issues, suspension of authorization for assignment of Mr. Sanjay Garg for 3 months, and a warning against misrepresentation of facts. The petitioner, Sanjay Garg, contests the order, arguing that paragraph 2.3.8 of the order goes beyond the allegations in the show cause notice and that the finding is perverse.

## Facts

Sanjay Garg, the petitioner, challenges an order passed by the Insolvency and Bankruptcy Board of India (IBBI) through its Disciplinary Committee (DC). The DC's order directed the IBBI to reinvestigate certain issues, suspended Sanjay Garg's authorization for assignment for three months due to contravention of the Code of Conduct, and warned him against misrepresenting facts. The petitioner argues that the DC's findings exceeded the scope of the show cause notice, particularly concerning the consideration of a resolution plan from United Biotech Private Limited (UBPL) after the deadline. The petitioner contends that he did not accept any resolution plan beyond the stipulated deadline and that the DC's findings are perverse. The petitioner also disputes the finding that

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## Issues and analysis

### Issue 1: Whether the Disciplinary Committee's findings in the impugned order exceeded the scope of the show …

**Ratio:** The principle is that disciplinary proceedings must be based on allegations clearly

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**Reasoning:** The petitioner argues that paragraph 2.3.8 of the impugned order goes beyond the

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**Interpretation:** This issue involves interpreting the scope of the show cause notice and

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**Application:** The court will compare the specific allegations in the show cause notice with

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## Parties

- **Judges:** SACHIN…
- **Appellants:** Sanjay…
- **Respondents:** Insolvency and…
- **Advocates:** Ashish Dh…; Gaurav…; +6 more

## Timeline

- **2024-12-16 — Order by IBBI's…**: The Insolvency and Bankruptcy Board of India (IBBI), through its Disciplinary Committee,…
- **2025-03-07 — High Court…**: The Delhi High Court issued notice to the respondents, stayed the suspension of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 220 — Appointment of disciplinary committee](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-220)

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