Whether you can invoke writ jurisdiction of the High Court under Article 226 of the Indian Constitution to interdict personal insolvency?
Whether you can invoke writ jurisdiction of the High Court under Article 226 of the Indian Constitution to interdict personal insolvency? This question arose before the Hon’ble Supreme Court of India in the recent decision of Bank of Baroda v. Farooq Ali Khan & Ors. (dated 20.02.2025). Interestingly, in the said case the High Court’s jurisdiction was invoked against the order of the Adjudicating Authority appointing the Resolution Professional. In the said order it was also directed that the said Resolution Professional shall examine the application under Section 95 and file a report under Section 99 of the IBC. Let us understand the facts of the case: R-1 in the said case was a promoter and director of one Associate Décor Limited (Corporate Debtor), and the present case was limited to the personal insolvency proceedings being initiated against R-1. Starting from 2010, the Corporate Debtor had taken loans from the Appellant and the Consortium of Ban...