Adjudicating Authority for corporate persons [ Section 60 ]

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....d notwithstanding anything to the contrary contained in this Code, where a corporate insolvency resolution process or liquidation proceeding of a corporate debtor is pending before a National Company Law Tribunal, an application relating to the insolvency resolution or liquidation or bankruptcy of a corporate guarantor or personal guarantor, as the case may be, of such corporate debtor shall be filed before such National Company Law Tribunal. * Transfer of Cases [ Section 60(3) of IBC, 2016 ] * An insolvency resolution process or liquidation or bankruptcy proceeding of a corporate guarantor or personal guarantor, as the case may be, of the corporate debtor pending in any court or tribunal shall stand transferred to the Adjudicating Auth....

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....ium is in place shall be excluded. Relevant Case Laws * GE Power India Ltd. Vs. NHPC Ltd. 2020 (6) TMI 692, Delhi HC Dated 26.06.2020 * Clause (c) sub-section (5) of section 60 of the Code vests the jurisdiction in AA to entertain and dispose of any question of priorities or any question of law or fact, arising out of or in relation to the insolvency resolution for liquidation proceedings. Therefore, the jurisdiction vested in AA while dealing with a resolution plan is of wide ambit and any question of law or fact in relation to the insolvency resolution has to be determined by the AA. * Embassy Property Development Pvt. Ltd. Vs. State of Karnataka & Ors. 2019 (12) TMI 188 - SUPREME COURT Dated 03.12.2019 * Though the AA and th....

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....and Kamboj Vs. ANG Industries Ltd. [CA (AT) (Ins.) No. 253 of 2019 and I.A. No. 995 of 2019] NCLAT order dt. 02.08.2019 * The AA is not supposed to pass any adverse observations, even prima facie, against the RP, without giving an opportunity to him as to why in view of certain act, the matter be not referred to the IBBI. * Union of India Vs. Maharashtra Tourism Development Corporation & Anr. 2020 (2) TMI 390 - NCLAT Dated 02.12.2019 * Section 212 of the Companies Act, 2013 does not empower the NCLT or AA to refer the matter to the Central Government for investigation by Serious Fraud Investigation Office (SFIO) even if it notices the company defrauding creditors and others. However, in terms of section 213(b) of the said Act, it c....

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....inst the CD and the personal guarantor, if pending before any court of law/tribunal or authority. However, this order of moratorium will not be applicable on filing of applications for triggering CIRP under sections 7 or 9 or 10 of the Code against the guarantor or the personal guarantor under section 60(2). * Committee of Creditors of Essar Steel India Ltd. Vs. Satish Kumar Gupta & Ors. 2019 (11) TMI 731 - SC Dated 15.11.2019 * The limited judicial review available to AA can in no circumstance trespass upon a business decision of the majority of the CoC. The residual jurisdiction of the AA under section 60(5)(c) cannot, in any manner, whittle down section 31(1) of the Code, by the investment of some discretionary or equity jurisdicti....

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....ower or corporate guarantor), second application by the same FC for same set of claim and default cannot be admitted against the other CD (i.e. corporate guarantor or the principal borrower). * Prasad Gempex Vs. Star Agro Marine Exports Pvt. Ltd. & Anr. 2019 (6) TMI 460 - NCLAT Dated 02.05.2019 * The AA has no jurisdiction to pass any order with regard to any matter pending before the court of criminal jurisdiction. * Jotun India Pvt. Ltd. Vs. PSL Ltd. 2018 (1) TMI 433 - HC, Bombay Dated 05.01.2018 * NCLT is not a court subordinate to the HC and hence as prohibited by the provisions of section 41(b) of the Specific Relief Act, 1963, no injunction can be granted by the HC against a CD from institution of proceedings in NCLT. *....

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....i. RP can approach the NCLT for adjudication of disputes that are related to the insolvency resolution process. However, for adjudication of disputes out of the insolvency, the RP must approach the competent authority. * iv. NCLT cannot do what the Code consciously did not provide it the power to do. * v. The jurisdiction of the NCLT cannot be invoked in matters where a termination may take place on grounds unrelated to the insolvency of the CD. * vi. It cannot even be invoked in the event of a legitimate termination of a contract based on an ipso facto clause, if such termination will not have the effect of making certain the death of the CD. * vii. NCLT to be cautious in setting aside valid contractual terminations which would....