ASHWANI KUMAR BHATIA Vs. UNION OF INDIA

JUDGEMENT

(1.) These Writ Petitions are filed seeking a Writ of Declaration to annul the impugned circular, dtd. 21/12/2023, issued by the Insolvency and Bankruptcy Board of India (IBBI), the second respondent herein, on the grounds that it is ultra vires and violative of the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), particularly Ss. 97(3), 97(4), and 97(5) of the IBC.

(2.) IBBI issued the circular, dtd. 21/12/2023 in exercise of its powers under Sec. 196 of the IBC to all registered Insolvency Professionals, recognized Insolvency Professional entities, and registered Insolvency Professional Agencies. The impugned circular aimed to clarify the submission of particulars and declarations by the Insolvency Professional in the application filed by the creditors in Part-IV in Form-C of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (the Personal Guarantors Rules).

(3.) The grievance of the petitioners is that paragraph No.3 of the mentioned circular pertains to cases in which a creditor files an application. It states that the creditor may recommend the name of the Insolvency Professional proposed for appointment in the case. Furthermore, it clarifies that in such instances, the proposed Insolvency Professional, to be appointed as the Resolution Professional, must also provide the details of the declaration in Part-IV of Form-C of the Personal Guarantors Rules for the consideration of the Adjudication Authority. Aggrieved by this, the present Writ Petitions are filed.