Tribunal clarifies jurisdiction on criminal complaints under Insolvency & Bankruptcy Code

The Tribunal dismissed the application seeking criminal complaint registration and preliminary inquiry under the Insolvency and Bankruptcy Code, 2016, citing lack of jurisdiction. Emphasizing the importance of proper forum selection, the Tribunal clarified that such matters fall under the jurisdiction of the Special Court established under the Companies Act, not the National Company Law Tribunal. This decision underscores the significance of adhering to statutory jurisdictional provisions for effective legal recourse in cases involving offences and penalties under specific statutes.

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Issues:
Application under Section 70 and 72 of the Insolvency and Bankruptcy Code, 2016 seeking criminal complaint registration and preliminary inquiry for offences under Indian Penal Code.

Analysis:
The Applicant/RP filed an application seeking the registration of a criminal complaint against the Respondent for various offences under the Indian Penal Code. The application was based on Sections 70 and 72 of the Insolvency and Bankruptcy Code, 2016, falling under Chapter VII, which deals with "Offences and Penalties." Section 236 of the Insolvency and Bankruptcy Code, 2016 specifies that offences under the Code shall be tried by the Special Court established under Chapter XXVIII of the Companies Act, 2013. It further states that the complainant in such cases shall be the Insolvency and Bankruptcy Board of India (IBBI). Therefore, only the Special Court has jurisdiction to hear and try applications related to Chapter VII. The National Company Law Tribunal, where the present application was filed, is not a Special Court established under Chapter XXVIII of the Companies Act, 2013, but constituted under Section 408 of the Companies Act, 2013. Consequently, the Tribunal ruled that the application was not maintainable and dismissed it on the grounds of jurisdiction.

This judgment highlights the importance of the proper forum for addressing legal matters, especially concerning offences and penalties under specific statutes. The delineation of jurisdiction between different courts or tribunals is crucial to ensure the effective administration of justice and adherence to procedural requirements. In this case, the Tribunal clarified that applications related to offences under the Insolvency and Bankruptcy Code should be brought before the Special Court established under the Companies Act, emphasizing the significance of legal provisions governing jurisdiction and complaint procedures. By dismissing the application on the basis of maintainability due to lack of jurisdiction, the Tribunal upheld the statutory framework's integrity and underscored the need for litigants to approach the appropriate judicial authority for redressal in matters involving criminal complaints and preliminary inquiries for alleged offences.

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