Do NCLT and NCLAT possess jurisdiction under the IBC to adjudicate on a contractual dispute between the appellant and the Corporate Debtor?

Last updated: 17 March 2021

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Quick Summary

This Supreme Court judgment addresses whether the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) have the authority under the Insolvency and Bankruptcy Code (IBC) to decide on contractual disputes between parties and a corporate debtor. The case specifically examines the termination of a Power Purchase Agreement (PPA) and the subsequent proceedings before the NCLT and NCLAT. The court analyses the scope of Section 60(5)(c) of the IBC concerning jurisdiction over matters arising out of or in relation to the insolvency resolution process.

Court :
Supreme Court of India

Brief :
By its judgment dated 29 August 2019, the National Company Law Tribunal stayed the termination by the appellant of its Power Purchase Agreement with Astonfield Solar (Gujarat) Private Limited . The order of the NCLT was passed in applications4 moved by the Resolution Professional of the Corporate Debtor and Exim Bank under Section 60 of the Insolvency and Bankruptcy Code, 20167 . On 15 October 2019, the NCLAT dismissed the appeal by the appellant under Section 61 of the IBC. The decision by the NCLAT is called into question.

Citation :
Civil Appeal No. 9241 of 2019

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