Dr. Vidya Sagar Garg v. Insolvency and Bankruptcy Board of India [W.P. (C) 9520/2017, CM APPL.38726-38727/2017] - Synopsis
Team SoOLEGAL 21 Dec 2020

In the case, Dr. Vidya Sagar Garg v. Insolvency and Bankruptcy Board of India [W.P. (C) 9520/2017, CM APPL.38726-38727/2017], an application was filed by the petitioner under Section 6 of the IBBI, 2016 for registration as an Insolvency Professional. The application was rejected by the respondent, IBBI, saying that the petitioner is not the correct person under Regulation 4(g)(i) of the IBBI(Insolvency Professional) Regulation, 2016.
The reason given by the respondent to prove the petitioner not being fit for the role, was that an FIR was lodged against the petitioner and a charge sheet was filed as well. The petitioner claimed that he had no guilty role in the FIR and thus, he had already filed an application for discharge of the FIR in the concerned Trial Court. The petitioner's lawyer had claimed that the petitioner had no part in the supposed breach of the statute, as expressed in the FIR and the charge sheet. It was also contended that an appeal for discharge had been lodged before the concerned Trial Court. The learned counsel for the respondent noted that the applicant is not a fit and proper person and therefore the judgement reached in the challenged order must not be disturbed. The respondent's counsel does, however, reasonably note that the matter will have a different connotation and viewpoint if the motion for discharge submitted by the plaintiff is approved by the Trial Court concerned.
The Delhi High Court was of the opinion that if the Trial Court granted a plea for discharge, then the respondent could treat the petitioner's case as new if an application had been made. The Hon’ble Delhi High Court noted that the writ petition at this point was premature in a sense and the petitioner was allowed to approach the Court after the FIR application is discharged by the concerned Trial Court.


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