# In the matter of Vishal Ghisulal Jain vs. Union Bank of India and Ors.

> HC judgment dated 2023-08-07. Citation: TCN-2023-HC-00045. This is a writ petition filed by Vishal Ghisulal Jain challenging an order dated 19.06.2023 passed…

- **Court:** HC
- **Order date:** 7 Aug 2023
- **Citation:** TCN-2023-HC-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/vishal-ghisulal-jain-vs-union-bank-of-india-and-ors-6c6651ee

## Summary

### Background

This is a writ petition filed by Vishal Ghisulal Jain challenging an order dated 19.06.2023 passed by the Insolvency and Bankruptcy Board of India (IBBI) ['Disciplinary Committee']. The impugned order found the Petitioner guilty of Contravention-II, Contravention-III, Contravention-VI, Contravention-VII and Contravention-VIII. The charge of Contravention-II is the inclusion of the promoters of Wadhwa Buildcon LLP as financial creditors without proper verification. Contravention-III concerns the reduction in the notice period for the 8th CoC meeting. Contravention-VII relates to non-verification of the claims of the home buyers.

## Facts

Vishal Ghisulal Jain, the Petitioner, is challenging an order passed by the Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee. The IBBI found the Petitioner guilty of several contraventions. One charge, Contravention-II, involves including promoters of Wadhwa Buildcon LLP as financial creditors without proper verification. The Petitioner claims he obtained a legal opinion before admitting them. Another charge, Contravention-III, concerns reducing the notice period for the 8th Committee of Creditors (CoC) meeting. The Bank of India, the applicant of IA No. 1035 of 2021, shared a copy of the order dated 08.09.2021 with the RP on 14.09.2021 at 11.40 wherein the NCLAT had directed to reconstitute the CoC and convene the meeting within a week from the

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## Issues and analysis

### Issue 1: Whether the inclusion of promoters of Wadhwa Buildcon LLP as financial creditors without proper …

**Ratio:** A Resolution Professional should not be suspended if they acted in good faith and

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**Reasoning:** The court found merit in the Petitioner's argument that he obtained a legal opinion

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**Interpretation:** This interprets that acting on legal advice, even if the advice is later deemed

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**Application:** The court applied this principle to the Petitioner's case, finding that his

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## Parties

- **Judges:** B. P. COLAB…; M.M. SA…
- **Appellants:** Vishal Ghisulal…
- **Respondents:** Wadhwa Buildcon…; Union of…
- **Other parties:** Kohi…

## Timeline

- **2023-06-19 — Order by IBBI…**: The Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee passed an…
- **2023-04-26 — Show Cause…**: Show Cause Notice dated…

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