Civil suit challenging CIRP initiation, alleging forged assignment deed and no enforceable debt, barred; plaint rejected under Order VII Rule 11

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A party instituted a civil declaratory suit challenging initiation of CIRP, disputing existence of a legally enforceable debt and alleging fraud/forgery in documents including an assignment deed, while seeking to bypass the IBC framework. The Court held that although the NCLT, while admitting a Section 7 application, cannot adjudicate pre-existing disputes about the debt, the IBC vests the NCLT with jurisdiction under Sections 65, 75 and 60(5)(c) read with the NCLT Rules to examine fraud, collusion, and veracity of documents, with consequences extending to continuation of CIRP. The civil suit was an impermissible collateral attack barred by IBC ouster provisions; the plaint was rejected under Order VII Rule 11 CPC - HC....