BHAVNA NAVIN TAYAL Vs. UNION OF INDIA

JUDGEMENT

(1.) By means of the present petition, the petitioners herein seek declaration of Rule 11 read with Form E of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to the extent it mandates disclosure of assets and trusts held by immediate family members of the "bankrupt" as ultra vires the Insolvency and Bankruptcy Code, 2016, as also the Constitution of India.

(2.) Mr. Saurabh Soparkar, learned Senior Advocate assisted by Mr. Parth Contractor, learned advocate for the petitioners would submit that Part III of the Insolvency and Bankruptcy Code, 2016 (in short as the "IBC") contains provisions for Insolvency resolution and bankruptcy order for individuals and partnership firms. Sec. 79 (17) defines "immediate family" of the debtor, which means his spouse, dependent children and dependent parents.

(3.) Chapter IV contained in Part III provides for Bankruptcy Order for Individuals and partnership firms. Relevant Sec. 129 of the IBC has been placed before us to submit before us that where a bankruptcy order is passed on the application for bankruptcy by a creditor under Sec. 123, the bankrupt is required to submit his statement of financial position to the bankruptcy trustee within seven days from the bankruptcy commencement date. Sub-sec. (2) of Sec. 129 further requires that the statement of financial position has to be submitted in such form and manner as may be prescribed.