NCLT can rule only on insolvency of corporate debtors, says Supreme Court
The Supreme Court on Monday held that the NCLT has jurisdiction to adjudicate disputes, which arises solely or relates to the insolvency of a corporate debtor.
The top court, however, cautioned the National Company Law Tribunal (NCLT) and its appellate tribunal (NCLAT) to ensure that they do not usurp the legitimate jurisdiction of other courts, tribunals and forum, when the dispute is not related to the insolvency of the Corporate Debtor.
A bench of Justices DY Chandrachud and M R Shah said, Therefore, considering the text of Section 60(5)(c) (of IBC) and the interpretation of similar provisions in other insolvency related statutes, NCLT has jurisdiction to adjudicate disputes, which arise solely from or which relate to the insolvency of the Corporate Debtor.
The top court verdict came on an appeal filed by Gujarat Urja Vikas Nigam Ltd against a NCLAT order by which it had upheld the decision of NCLT staying the termination of Power Purchase Agreement (PPA) entered with a firm ...