The Gujarat High Court single Judge bench comprising Justice Ms. Vaibhavi D. Nanavati while hearing a petition, found that the order issued by the respondent-IBBI, which was signed by a Single Member of the Disciplinary Committee, is in violation of Section 220(1) of the Insolvency and Bankruptcy Code, 2016. The provision mandates that the Disciplinary Committee must consist of at least "two whole-time members." The HC Bench stayed the IBBI Disciplinary Committee Order.
In the present case, the writ-applicant challenged the order passed by the respondent-IBBI dated 23.3.2023. The learned Senior Counsel submitted that the impugned order is signed by one member only. It is against the provisions of Section 220(1) of the Insolvency and Bankruptcy Code, 2016. Placing reliance on the same it was submitted that the said provision clearly stipulates the Disciplinary Committee shall consist of “whole time members” and hence it could be construed as comprising of at least “two whole time members” whereas in the facts of the present case the coram comprises of a single member, hence submitted that the said order dated 23.3.2023 be stayed.
The order issued by the respondent-IBBI, which was signed by a single member of the Disciplinary Committee, is in violation of Section 220(1) of the Insolvency and Bankruptcy Code, 2016. The provision mandates that the Disciplinary Committee must consist of at least "two whole-time members."
The High Court considered the submissions advanced by the learned Senior Counsel and the order passed in the Special Civil Application No. 13767 of 2022 dated 20.7.2022. The HC Bench issued a notice making it returnable on 15-6-2023 and stayed the impugned order dated 23.3.2023 till the next returnable date.