NCLT has sole Jurisdiction in handling matters of Insolvency of Corporate Debtor

Last updated: 14 August 2021

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Quick Summary

The Madras High Court has clarified that the National Company Law Tribunal (NCLT) possesses sole jurisdiction over corporate insolvency matters under the Insolvency and Bankruptcy Code (IBC). The court criticised the NCLT for attempting to defer decisions to the High Court, stating the NCLT should manage its cases independently, adhering to the IBC's time-bound framework. The High Court emphasised that the NCLT must decide on injunctions or the merits of a case within its specialised domain without seeking external guidance.

Court :
Madras High Court

Brief :
In M/s. Kotak Mahindra Bank Limited v. K. Bharathi and Ors [W.P.No.12957 of 2021 dated August 5, 2021], the petition has been filed under the writ of Mandamus directing the Hon’ble National Company Law Tribunal, Chennai ('NCLT') to dispose of the application filed by M/s. Kotak Mahindra Bank Limited ('the Petitioner') in MA No.538 of 2019 in CP No. 710 of 2018 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IBC').

Citation :
W.P.No.12957 of 2021 dated August 5, 2021

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