Delhi HC rejects Appeal against IBBI as Barred by Principle of Resjudicata [Read Order]

In a recent case, the Delhi High Court rejected the appeal against the Insolvency Bankruptcy Board of India ( IBBI ) as it was barred by the principle of resjudicata. It was observed that the appeal is not maintainable as the petitioner had challenged the very same through the Special Leave Petition ( SLP ) and had been dismissed as withdrawn unconditionally.

Pooja Menghani, the appellant challenged the order passed by the Single Judge whereby the Single Judge dismissed the petition and refused to interfere with the order dated 2nd May 2022 passed by Respondent No. 1/ IBBI and held that although the Appellant is eligible for consideration as Insolvency Professional (IP), the Respondent No. 1/ IBBI had the discretion to reject her application by citing “fit and proper person” as the reason.

Counsel for the respondent stated that the present appeal is not maintainable as the petitioner had challenged the very same. It was submitted that the said SLP had been dismissed as withdrawn unconditionally.

The two judge bench of the Acting Chief Justice and Justice Manmeet Pritam Singh Arora held that “In view of the unconditional withdrawal of the SLP, the Court is of the view that the present appeal is not maintainable as it is barred on the principle of constructive res judicata.”

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