Bombay High Court Upholds IBBI Regulatory Fee Under IBC as Valid Fee, Not Tax

Case Snapshot

• Case Name: Hazel Mercantile Limited & Ors. v. Insolvency and Bankruptcy Board of India & Ors. (with connected matters)

• Citation: Writ Petition No. 703 of 2023 & connected matters (2026:BHC-OS:18434)

• High Court: High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction

• Bench: Hon'ble Mr. Justice Manish Pitale and Hon'ble Mr. Justice Shreeram V. Shirsat

• Date of Judgment: 19th August, 2026

• Area of Law: Insolvency and Bankruptcy Code, Constitutional Law, Regulatory Fee

Judgment Headline

Court upholds IBBI's regulatory fee of 0.25% on resolution plans as a valid regulatory fee.

The Judgment in One Line

Bombay High Court upheld the IBBI's regulatory fee under Regulation 31A, holding it is a valid fee, not a tax, and within the Board's powers.

Why This Judgment Matters

This landmark judgment clarifies the validity of regulatory fees imposed by statutory regulators under the Insolvency and Bankruptcy Code. It establishes that the IBBI's broad regulatory role extends beyond supervising insolvency professionals to include creating an efficient ecosystem for CIRP. The ruling confirms that regulatory fees need only a general quid pro quo—not exact equivalence. It also rejects arguments that such fees are retrospective or violate

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