Sachin Naveen Sinha Vs Insolvency and Bankruptcy Board of India (NCLAT Delhi)
The appeal was filed by a resolution professional challenging the order dated 08.06.2026 passed by the Insolvency and Bankruptcy Board of India (IBBI), whereby his registration was suspended for three years following disciplinary proceedings. As a consequence of the impugned order, he was also removed from functioning as a resolution professional in three other Corporate Insolvency Resolution Processes (CIRPs), with the suspension taking effect from 08.07.2026.
Earlier, the Adjudicating Authority, by order dated 26.09.2025 in I.A.382/2025 in C.P.(IB) 63/9/JPR/2020, had removed the appellant as resolution professional in one CIRP, directed him to refund ₹2.0 lakhs received as initial remuneration, and recommended disciplinary proceedings before the IBBI. That order had been challenged before the NCLAT in C.A.1609 of 2025, where an interim stay had been granted on the direction requiring refund of ₹2.0 lakhs.
The principal issue before the Tribunal was whether the IBBI, while exercising disciplinary jurisdiction, could remove or suspend a resolution professional from all ongoing assignments based on disciplinary proceedings arising out of one CIRP, or whether its action should remain confined to the assignment in relation to which the proceedings had been initiated. The Tribunal also considered the scope of its appellate jurisdiction under newly inserted Section 220(7) of the Insolvency and Bankruptcy Code, 2016, introduced by the IBC (Amendment) Act 6 of 2026 with effect from 22.05.2026.
