Mortgage enforcement in insolvency proceedings remains for civil court, not the Tribunal, despite linked debt claims.

Disputes over enforcement of mortgage security created under Section 58(f) of the Transfer of Property Act, 1882 fall within the jurisdiction of the civil court, not the Tribunal. The Tribunal cannot determine or enforce rights and liabilities arising from the mortgage merely because the debt is raised in insolvency proceedings, and such relief is not maintainable under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 or Rule 11 of the NCLT Rules, 2016. The question whether the underlying liability is financial debt or operational debt was left to the main company petition.

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Issues: Whether the application seeking directions to invoke the mortgage security and settle the alleged debt was maintainable before the Tribunal, and whether the Tribunal could adjudicate the rights and liabilities arising from the mortgage transaction.

Analysis: The mortgage was created under Section 58(f) of the Transfer of Property Act, 1882. Rights and liabilities arising from enforcement of such mortgage fell within the domain of the civil court, and the Tribunal could not assume jurisdiction to determine or enforce those rights merely because the transaction was connected with a debt alleged in proceedings under the Insolvency and Bankruptcy Code, 2016. The matter was also held not to be capable of being decided under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 or Rule 11 of the National Company Law Tribunal Rules, 2016. The question whether the underlying liability was financial debt or operational debt was left for consideration in the main company petition.

Conclusion: The application was not maintainable before the Tribunal and was liable to be dismissed.

Ratio Decidendi: Disputes concerning enforcement of mortgage rights created under Section 58(f) of the Transfer of Property Act, 1882 are to be pursued before the competent civil court and cannot be adjudicated by the Tribunal in collateral insolvency proceedings.

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