Case Law Details
Keyur Jagdishbhai Shah Vs Insolvency And Bankruptcy Board of India (Gujarat High Court)
Insolvency and Bankruptcy Board of India (IBBI) penalized Insolvency professional Keyur Shah by suspending the license for 2 years.
IBBI order stated that though the RP had not taken due care in getting the land revenue records updated of the insolvent company during the insolvency process. The insolvent company had been converted from partnership firm.
The Resolution professional had submitted that the resolution plan of the company was approved by financial creditors committee after taking cognizance of the issue of name change not effected by the suspended promoters of the company. However, NCLT rejected the resolution plan and also changed the RP treating name change inaction as serious issue. Mr. Shah did not appeal against the NCLT order and hence IBBI took cognizance of the order and treated this irregularity as misconduct.
Pointing out various issues in the adjudication of the IBBI Disciplinary Committee order with regard to limitation, ministerial irregularity and neutral role of RP.
One of the major issue with regard to investigation pointed out was presence of the investigation head as member of Disciplinary Committee which goes against the basic principles of justice that prosecutor cannot be adjudicator in the same case.
Mr. Shah agitated the order before Hon’ble Gujarat High Court. Hon’ble High Court stayed the order of IBBI till next date.
*Mr.Percy Kavina, Senior advocate* appeared for petitioner alongwith advocates Mr. Vishal J Dave and Mr.Nipun Singhvi
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
Heard Mr. Percy Kavina, learned Senior Counsel assisted by Mr. Vishal J. Dave, learned counsel for the petitioner.
Considering the facts and circumstances of the case and the issue involved in present petition, the petition requires considerations. Hence, following order is passed:-
Notice returnable on 25.06.2026. Ad-interim relief in terms of paragraph No. 21 (c) and (d) is granted till returnable date.
Direct service is permitted.
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