Category: IBBI Orders

Question arises for consideration before NCLAT is whether the Adjudicating Authority/National Company Law Tribunal has jurisdiction to quash the disciplinary proceedings once initiated by the IBBI. NCLAT set aside order and held that once a disciplinary proceeding is initiated by the IBBI on the basis of evidence on record, it is for the Disciplinary Authority, i.e., IBBI to close the proceeding or pass appropriate orders in accordance with law. Such power having been vested with IBBI and in absence of any power with the Adjudicating Authority/ (National Company Law Tribunal), the Adjudicating Authority cannot quash the proceeding, even if proceeding is initiated at the instance and recommendation made by the Adjudicating Authority/ National Company Law Tribunal.