Kapil Goel Vs. Insolvency and Bankruptcy Board of India
W.P.(C) 10663/2018 & CM APPL. 41566/2018
Facts:
1.Petitioner is a Resolution Professional (hereinafter ‘RP’),who had incorporated a partnership firm by the name ‘IBBI Insolvency Practitioners LLP’ on 8th November, 2017. The name ‘IBBI’ is the name of the Board constituted under Section 3 of the Insolvency and Bankruptcy Code, 2016
2. A show cause notice was issued by the IBBI considering that he has use the word IBBI in his firm name. Vide order dated 06th September 2018 IBBI held that the RP was in violation of Section 208 of the IBC read with Regulation 7(2)(a) and 7(2)(b) of the 2016 Regulations. It directed that the RP would not be entitled to take any new assignment till the entity bearing the IBBI name is removed from the Register of Companies by the Ministry of Corporate Affairs. It also directed suspension of the RP for a period of three months from the issue of the order.
3.Petitioner is challenging the order.
Issue: Whether order passed was correct in law?
Arguments:
For Respondent: Counsel for the IBBI, submits that the name ‘IBBI Insolvency Practitioners LLP’ which was incorporated by the RP has already been struck off from the Register of Companies by the Registrar of Companies/Ministry of Corporate Affairs (hereinafter ‘MCA’) on 26th April, 2019.
Decision: Order passed by IBBI was correct and does not require interference.
Rationale: Court noted that the period of suspension of three months has also already lapsed. The order has also already been given effect to by the MCA and the RP’s suspension period of three months as directed by the impugned order has already come to an end
order:
