Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 17 July 2026
Case Overview
This appeal (Comp. App. (AT) (Ins) No. 1160 of 2026) was filed by Mr. Sanjay Gupta, a Resolution Professional, challenging an order dated 16 June 2026 issued by the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI). The IBBI order had suspended his registration as a Resolution Professional for a period of two years. The appellant's counsel argued that the suspension order was incompetent as it was signed by the Chairperson of the IBBI. They cited the judgment of the Calcutta High Court in Sashi Agarwal vs Union of India & Others [W.P.A 10330 of 2022], which held that the Chairperson of the IBBI cannot be part of the Disciplinary Committee. The appellant also sought an interim stay on the suspension order, noting that it affected all his assignments as a Resolution Professional. The respondent, IBBI, opposed the stay, contending that the amended Section 220(1) of the IBC (via the IBC (Amendment) Act 6 of 2026) contained no such embargo on the Chairperson's participation.
Final Outcome
The NCLAT Bench, comprising Justice N. Seshasayee (Member Judicial), Arun Baroka (Member Technical), and Indevar Pandey (Member Technical), found that the appellant had a prima facie case. However, due to time constraints arising from the transfer of one bench member (Member Judicial) to the Chennai Bench, detailed arguments could not be heard. The tribunal granted an interim stay on the IBBI's suspension order for a period of 10 days, effectively suspending the suspension until the next hearing. A critical condition of this interim order is that the appellant is instructed not to discharge his functions as a Resolution Professional in the specific assignment that led to the disciplinary action. The matter has been listed for further hearing on 24 July 2026.
Topics: Insolvency Professional Regulation, NCLAT Appeal