# Insolvency and Bankruptcy Board of India (IBBI) Vs Shri Rishi Prakash Vats & Ors. CA (AT) (Insolvency) No.324-2019

> NCLAT judgment dated 2019-07-11. Citation: TCN-2019-NCLAT-00454. The Insolvency and Bankruptcy Board of India (IBBI) filed an appeal against an order dated…

- **Court:** NCLAT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLAT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/insolvency-and-bankruptcy-board-of-india-ibbi-vs-shri-rishi-prakash-vats-ors-ca-6d69c75c

## Summary

### Background

The Insolvency and Bankruptcy Board of India (IBBI) filed an appeal against an order dated February 5, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, which quashed disciplinary proceedings initiated by the IBBI. The appeal arose from a situation where the Corporate Insolvency Resolution Process (CIRP) was initiated against Rana Global Limited, with Mr. Rishi Prakash Vats appointed as the Resolution Professional. Delays in the CIRP led the Adjudicating Authority to observe a lackadaisical attitude and direct the matter to the IBBI. Subsequently, disciplinary proceedings were initiated against Mr. Vats, but the Adjudicating Authority later quashed these proceedings, leading to the IBBI's appeal.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Rana Global Limited, and Mr. Rishi Prakash Vats was appointed as the Resolution Professional. The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, noted delays in the CIRP and observed a 'lackadaisical attitude'. The Adjudicating Authority directed the matter to the Insolvency and Bankruptcy Board of India (IBBI) for appropriate action, leading to the initiation of disciplinary proceedings against Mr. Vats. Subsequently, Mr. Vats provided an explanation to the Adjudicating Authority regarding the delays. The Adjudicating Authority then expunged its earlier observation and informed the IBBI. However, the Adjudicating Authority later quashed the disciplinary proceedings

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority/ National Company Law Tribunal has jurisdiction to quash the …

**Ratio:** The legal principle is that once a disciplinary proceeding is initiated by the IBBI based

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**Reasoning:** The court reasoned that the power to conduct and conclude disciplinary proceedings lies

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**Interpretation:** This clarifies the separation of powers between the Adjudicating Authority and

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**Application:** In this case, the Adjudicating Authority's order quashing the disciplinary

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** INSOLVENCY AND…
- **Respondents:** Rana Global…; RISHI PRAKA…

## Timeline

- **2018-03-23 — Petition Ad…**: The petition filed by…
- **2018-04-26 — Adjudicating Authority…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench passed an…

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