- 1 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO.14340 OF 2021 (GM-RES) BETWEEN: MR. RAVINDRA C. S/O CHANDRAPRAKASH, AGED ABOUT 42 YEARS, S-73, KIRLOSKAR COLONY, 3RD STAGE, BASAVESHWARANAGAR, BENGALURU - 560 079. HAVING OFFICE AT: NO.361, FIRST FLOOR, 7TH CROSS, JAYANAGAR 1ST BLOCK, BENGALURU - 560 011. …PETITIONER (BY SRI. I.S. DEVAIAH, ADVOCATE) AND: 1. INDIAN INSTITUTE OF INSOLVENCY PROFESSIONALS OF ICAI, A COMPANY FORMED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI), AS PER SECTION 8 OF THE COMPANIES ACT, 2013, AND HAVING ITS REGISTERED OFFICE AT: ICAI BHAWAN, POST BOX NO.7100, INDRAPRASTHA MARG, NEW DELHI - 110 002. REP. BY ITS SECRETARIAT. ALSO AT: ICAI BHAWAN, 8TH FLOOR, HOSTEL BLOCK, A-29, SECTOR-62, NOIDA - 201 309. Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 2. MEMBERSHIP COMMITTEE OF THE INDIAN INSTITUTE OF INSOLVENCY PROFESSIONALS OF ICAI, HAVING ITS OFFICE AT: ICAI BHAWAN, POST BOX NO.7100, INDRAPRASTHA MARG, NEW DELHI - 110 002. REP. BY ITS SECRETARIAT. ALSO AT: ICAI BHAWAN, 8TH FLOOR, HOSTEL BLOCK, A-29, SECTOR-62 NOIDA - 201 309. …RESPONDENTS (BY SRI. V.G. BHANUPRAKASH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER DATED 01.07.2021 PASSED BY THE RESPONDENT NO.2 IN THE APPEAL PROCEEDINGS VIDE ANNEXURE-Q; QUASH THE ORDER DATED 05.03.2021 PASSED BY THE RESPONDENT NO.1 REJECTING THE APPLICATION OF THE PETITIONER DATED 30.11.2020 FOR ENROLLMENT AS A PROFESSIONAL MEMBER OF THE RESPONDENT NO.1 VIDE ANNEXURE-C; DIRECT THE RESPONDENT NO.1 TO APPROVE THE APPLICATION OF THE PETITIONER DATED 30.11.2020 FOR ENROLLMENT AS A PROFESSIONAL MEMBER OF THE RESPONDENT NO.1 IN ACCORDANCE WITH LAW IN A TIME BOUND MANNER VIDE ANNEXURE-B; AND ETC. THIS PETITION COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL ORAL ORDER The petitioner is before this Court being dissatisfied with the order dated 01.07.2021 (Annexure-Q) passed by the - 3 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 respondent No.2 in the appeal filed by him bearing Appeal No.IIIPI/MC/03/2021-22 as well as the communication/order dated 05.03.2021 (Annexure-C) made by the respondent No.2, rejecting the application of the petitioner filed for enrollment as a Professional Member of the respondent No.1; and seeking direction to the respondent No.1 to approve the application of the petitioner dated 30.11.2020 (Annexure-B) for enrolment as a Professional Member of the respondent No.1. 2. The case of the petitioner is that, he being a Chartered Accountant having seventeen years of unblemished career and enjoying high reputation for his professional work had sought for his enrolment as a Professional Member of the respondent No.1. That by communication dated 05.03.2021 (Annexure-C), the respondent No.2 rejected the application of the petitioner in terms of Clause 10(5) of the Bye-Laws of Indian Institute of Insolvency Professional of ICAI (for short, hereinafter referred to as 'Bye-Laws of IIIPI') holding that there is a disciplinary proceedings pending against him and same was not resolved. As against which, the petitioner preferred an appeal before the respondent No.1, which by order dated - 4 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 01.07.2021 (Annexure-Q) found that, even as on the date of the said appeal, the disciplinary proceedings initiated against him had not been concluded and therefore, referring to Clause 10(9) of the Bye-Laws of IIIPI in view of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (for short, hereinafter referred to as 'IBBI Regulations-2016') requiring as to whether any disciplinary proceedings was pending, and since there was a disciplinary proceedings against the petitioner was pending, appeal was disposed of concurring with order dated 05.03.2021 (Annexure- C) passed by the respondent No.2. Being aggrieved by the same, the petitioner filed the present writ petition. 3. Learned counsel appearing for the petitioner drawing attention of this Court to the Regulations 4 and 5 of the IBBI Regulations-2016 providing for Eligibility, Qualification and Experience criteria for an individual to register as an insolvency professional submits that the reason assigned by respondents 1 and 2 in their orders dated 05.03.2021 (Annexure-C) and 01.07.2021 (Annexure-Q) runs contrary to the statutory provisions. He further submits that, when the - 5 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 statute does not provide any prohibition for enrolment as a member merely because of pendency of the disciplinary proceedings, the respondents 1 and 2 based on the Bye-Laws could not have passed the impugned orders as the same amounts to in excess of the statute and therefore, the reason assigned by the respondents 1 and 2 in the impugned orders that the disciplinary proceedings against the petitioner is pending cannot be sustained. He also submits that the petitioner has been successful in every criteria except that there was pending consideration of disciplinary proceedings, which has also been now stood dropped. Therefore, the respondents could not have rejected the application of the petitioner. Accordingly, he seeks for interference of this Court. 4. Heard and perused the materials on record. 5. There is no dispute with regard to fact that an individual seeking enrolment as a Profession Member in terms of the regulations referred to above has to go through the rigor of consideration of his application as per the Bye-Laws of IIIPI produced at Annexure-K. The petitioner is not challenging the Bye-Laws more particularly the Clause 10(5) of the Bye-Laws of - 6 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 IIIPI. The Clause 10(5) of the Bye-Laws of IIIPI reads as under: "10(5). IIIPI may reject an application if the applicant does not satisfy the criteria for enrolment or does not remove the deficiencies or submit additional documents or information to its satisfaction, for reasons recorded in writing." 6. The Indian Institute of Insolvency Professional of ICAI may reject an application, if the applicant fails to satisfy the criteria for enrolment and does not remove the deficiencies or submit additional documents or information to its satisfaction for the reasons recorded in writing. Clearly, the said Clause provides discretionary power and subjective satisfaction of the concerned, to approve and enroll an individual as a Member. 7. Paragraph 4.0 of the Order dated 01.07.2021 (Annexure-Q) passed by the respondent No.1 upon the appeal filed by the petitioner under Clause 10(9) and Clause 10(5) of the Bye-Laws of IIIPI reads as under: "4.0 The preferred appeal by applicant was considered by Membership committee held on 17.05.2021 and was rejected under Clause 10(9) of the Bye-Laws of IIIPI in - 7 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 view of IBBI (Insolvency Professionals) Regulations, 2016, which requires an IPA to check/verify- "Whether any disciplinary proceedings is pending, or any disciplinary action has been taken at any time in the preceding three years against the professional member by the ICAI, ICSI, ICAI (Cost), Bar council or RVO of which he is a Member." '' 8. There is no dispute with regard to fulfillment of this requirement. Order/communication dated 05.03.2021 (Annexure-C) made by the respondent No.2 merely refers to the fact that the e-mail was issued to the petitioner on 29.12.2020 informing that the disciplinary proceedings against him was pending and as such, the application could not be processed. In reply to the said e-mail, apparently the petitioner had submitted a clarification with regard to pendency of disciplinary proceedings against him. However, it was found that the said disciplinary proceedings has not been concluded till the date of issuance of communication/order dated 05.03.2021 (Annexure-C) by the respondent No.2. The situation was same until the order dated 01.07.2021 (Annexure-Q) passed by the respondent No.1 in the appeal proceedings as found at Paragraphs 2.0 and 3.0, wherein it is held that the proceedings against the petitioner were still - 8 - HC-KAR NC: 2026:KHC:8229 WP NO.14340 OF 2021 pending consideration. Therefore, rejection of the application of the petitioner is for no other reason but for the pendency of disciplinary proceedings, which in the light of Clause 10(5) and the reasons assigned at paragraph 4.0 of the order dated 01.07.2021 (Annexure-Q) passed by the respondent No.1 cannot be found fault with. In that view of the matter, this Court declines to show indulgence in this petition. 9. As submitted by learned counsel appearing for the petitioner, now the petitioner is said to have been cleared/absolved of the disciplinary proceedings pending against him. Therefore, the petitioner is at liberty to make fresh application seeking enrolment as a Profession Member of the respondent No.1 and the respondents shall consider the same in accordance with law. The respondents may consider the petitioner for exempting him from taking up examination afresh, if he deserves. Accordingly, writ petition is disposed of. SD/- (M.G.S. KAMAL) JUDGE ARK List No.: 1 Sl No.: 3