IBBI Imposes ₹5 Lakh Penalty On IRP In Bhasin Infotech CIRP For Not Seeking NCLAT Clarification

The Insolvency and Bankruptcy Board of India's (IBBI) Disciplinary Committee (DC) on 21 April, imposed a penalty of Rs 5 lakh on Insolvency Professional Mukesh Gupta for lapses in diligence during the Corporate Insolvency Resolution Process (CIRP) of Bhasin Infotech and Infrastructure Pvt. Ltd.

Whole Time Member Sandip Garg, passing the order, held that Gupta failed to promptly seek clarification from the National Company Law Appellate Tribunal (NCLAT) on the scope of his authority after an interim restraint order created ambiguity. He observed:

“In view of the foregoing analysis, the DC is of the considered view that the sequence of interim orders passed by the NCLAT, coupled with the language employed therein, did give rise to ambiguity regarding the vesting of control and management of the CD.”

The CIRP of Bhasin Infotech and Infrastructure Pvt. Ltd. was admitted by the Delhi Bench of the National Company Law Tribunal (NCLT) on 4 December 2023, and Mukesh Gupta was appointed as Interim Resolution Professional (IRP).

The suspended board challenged the admission before the NCLAT. On 7 December 2023, the NCLAT passed an interim order stating that “no further steps shall be taken” under the admission order and restrained creation of third-party interests, which led to uncertainty over the IRP's powers.

A complaint alleged that Gupta failed to take control and custody of the corporate debtor's assets. The IBBI issued a show cause notice in July 2025. Gupta replied that he complied with the NCLAT's restraint order and therefore did not proceed with steps such as constituting the Committee of Creditors or issuing public announcements.

He also relied on subsequent NCLAT directions that required him to file affidavits, inspect units, and submit reports, all of which he followed. He argued that he acted in good faith and cited the decision in Ashok Kumar Tyagi v. UCO Bank to support his interpretation of the interim order.

The DC examined the sequence of orders. It noted that the 7 December 2023 order did not quash the CIRP admission. Later directions dated 4 July 2024, 23 August 2024, 13 February 2025, and 17 February 2025 continued procedural oversight. The NCLAT's clarification on 7 March 2025 stated that the IRP's role vested from 4 December 2023, though restrained in operation.

The DC held that Gupta did not act with wilful misconduct. However, it found that he should have approached the NCLAT for clarification immediately after the 7 December 2023 order. His failure to do so showed lack of due diligence expected of an insolvency professional under Sections 17 and 18 of the Insolvency and Bankruptcy Code, 2016.

Accordingly, the DC imposed a penalty of Rs 5 lakh under Section 220 of the IBC and Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017. It directed Gupta to deposit the amount within 45 days and submit proof of payment to the IBBI.