The Calcutta High Court held that the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI) cannot serve on the Disciplinary Committee, as the statute mandates such roles for Whole Time Members only.
Calcutta High Court Clarifies Role of IBBI Chairperson
The Calcutta High Court has ruled that the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI) does not qualify as a Whole Time Member and, consequently, cannot act as a member of the Disciplinary Committee constituted under the Insolvency and Bankruptcy Code (IBC). This judgement reaffirms the principle that specific statutory provisions dictate the manner in which functions must be executed.
The court noted, 'if a thing is to be done in a particular way, it must be done in that way or not at all,' emphasizing strict adherence to statutory definitions. The exclusion of the Chairperson from the committee signifies a clear legislative intent that must be respected to maintain the integrity of the framework governing disciplinary procedures.
Legal professionals should be aware of this ruling's implications for the roles and responsibilities within statutory bodies. Understanding these distinctions will be crucial in advising clients on compliance and operational matters concerning the IBC and the IBBI.
Citations
- IBBI Case (2026) CALHC 1449008
