Argus Partners is pleased to announce that it successfully represented the liquidator of Aaj Ka Anand Papers Limited before the High Court of Judicature at Bombay in a writ petition challenging an order of the Disciplinary Committee of the Insolvency and Bankruptcy Board of India suspending his authorisation to act as an insolvency professional, along with the related show cause notice.

By its judgment dated August 25, 2026, the division bench of the High Court allowed the writ petitions and quashed the Disciplinary Committee's order, holding that the show cause notice and the resulting findings were vitiated by procedural irregularity and violation of principles of natural justice, including reliance on issues outside the scope of the underlying complaints and disregard of relevant material.

The judgment is significant since it reaffirms that a regulator must genuinely apply its mind to an investigation report before forming a prima facie opinion, rather than issuing a show cause notice on unconsidered material. It also underscores that a mere difference in interpretation of ambiguous regulatory provisions, absent any stakeholder grievance, cannot be equated with misconduct on the part of an insolvency professional. Finally, the Court took judicial notice of the disproportionate impact of the automatic suspension triggered upon mere issuance of a show cause notice under the Model Bye-Laws, calling on the Board to be more circumspect before invoking such proceedings against insolvency professionals.

The matter was argued by Rahul Dev (Partner) assisted by Arjun Amin (Senior Associate).