TaxTMI 
TaxTMI 
2026 (9) TMI 660
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....er dated 05.12.2025, the Ld. Principal Bench has: i) Dismissed T.A. (IBC) No. 50 (PB)/2024, filed under Rule 16(d) of the National Company Law Tribunal Rules, 2016 read with Sections 61(1) and 61(2) of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of the NCLT Rules, 2016, seeking transfer of C.P. (IB) No. 419/ND/2023, titled "Praveen Kumar Garg v. Kamlesh Rani Singla", from the Hon'ble NCLT, New Delhi Bench-II to the Hon'ble NCLT, Chandigarh Bench (Court-II); and ii) Closed the said transfer application by placing reliance upon the order dated 16.10.2025 passed by the Hon'ble Gujarat High Court in R/Special Civil Application No. 11679 of 2024. Submissions of the Appellant 2. The Appellant submits that, this Appellate Tribunal is empowered under Section 421 of the Companies Act, 2013 to entertain and adjudicate the present Appeal against the impugned order dated 05.12.2025. It argued that in addition to the statutory appellate jurisdiction, this Hon'ble Tribunal also possesses inherent powers bestowed on it under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, which enables to exercise inherent powers and to pass suc....
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...., titled Praveen Kumar Garg v. Laxmi Pipes Ltd., which stood admitted on 28.05.2024, and wherein Mr. Gautam Singhal was appointed as the Resolution Professional. 6. The pendency and admission of the Corporate Insolvency Resolution Process of the Corporate Debtor before the Hon'ble NCLT, Chandigarh Bench crystallised exclusive territorial and subject-matter jurisdiction in terms of Section 60(2) of the Insolvency and Bankruptcy Code, 2016. Consequently, the initiation and continuation of the proceedings under Section 95 IBC before the Hon'ble NCLT, New Delhi, Bench-II are without jurisdiction, and void ab initio, thus the said proceedings are liable to be transferred to the Hon'ble NCLT, Chandigarh Bench in accordance with law. 7. Further, by order dated 28.05.2024, the Hon'ble NCLT, New Delhi, Bench-II, admitted CP (IB) No. 419/ND/2023 under Section 95 IBC, appointed Mr. Gautam Singhal (IBBI/IPA-001/IP-P01437/2018-2019/12240) as the Resolution Professional, and thereby triggered an interim moratorium under Section 96 IBC, resulting into an initiation of parallel insolvency proceedings arising out of the same debt and transaction. Being aggrieved the Appellant ....
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....re the same Bench. The legislative intent is to ensure consolidation of proceedings, judicial consistency, and avoidance of conflicting decisions. In view of the aforesaid overriding statutory mandate under Section 60(2) of the Insolvency and Bankruptcy Code, 2016, the Hon'ble NCLT, New Delhi, lacks both territorial jurisdiction as well as inherent jurisdiction to entertain or proceed with the Section 95 application against the Appellant, and any continuation of such proceedings would be void ab initio, coram non judice, without jurisdiction, and wholly unsustainable in law. 9. The issue raised in the present appeal is covered by the judgment of this Hon'ble Appellate Tribunal in Company Appeal (AT) (Insolvency) No. 58 of 2023, Ankit Miglani v. State Bank of India, decided on 19.04.2023, wherein this Hon'ble Tribunal, after an exhaustive consideration of the scheme and scope of Section 60(1), (2) and (3) of the Insolvency and Bankruptcy Code, 2016, has categorically held that Section 60(2) of the Code is mandatory in nature and admits of no discretion. It has been unequivocally laid down that where a Corporate Insolvency Resolution Process of the Corporate Debtor is ....
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....o. 419/ND/2023, titled as Praveen Kumar Garg Proprietor of M/S GSV Products Vs. Kamlesh Rani Singla from NCLT New Delhi Bench II to NCLT Chandigarh Bench-II under Section 60(2) IBC read with Rule 16(d) NCLT Rules. (c) Quash and set aside all proceedings undertaken before the Hon'ble National Company Law Tribunal, New Delhi in CP (IB) No. 419/ND/2023 pursuant to and subsequent to the admission order dated 28.05.2024, and direct that the said proceedings shall remain in abeyance and stand transferred to the Hon'ble National Company Law Tribunal, Chandigarh Bench-II, being the competent and jurisdictional Adjudicating Authority under Section 60(2) of the Insolvency and Bankruptcy Code, 2016. (d) Pass such other order(s) as this Hon'ble Tribunal may deem fit and proper in the interest of justice. Issues for consideration: • Whether the Hon'ble National Company Law Tribunal, New Delhi, Bench-II, could exercise jurisdiction over proceedings initiated under Section 95 of the Insolvency and Bankruptcy Code, 2016 against a Personal Guarantor, when the Corporate Insolvency Resolution Process of the Corporate Debtor is admittedly pending prior....
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....liable to be quashed and set aside. Moreover, since the issue of transfer of these petitions was already pending before the NCLT, New Delhi, on the judicial side, the exercise of administrative powers in this manner has rendered those proceedings ineffective, which further fortifies the impropriety of the orders. I answer the question No.(ii) accordingly." 13. The primary issue for our consideration before us is as to whether NCLT, New Delhi, Bench-II, could exercise jurisdiction over proceedings initiated under Section 95 of the Insolvency and Bankruptcy Code, 2016, against a Personal Guarantor, when the CIR Proceedings of the Corporate Debtor is already pending before the NCLT, Chandigarh Bench-II, and whether it is against the provisions under Section 60(2) of the Code? Further whether Rule 16(d) of the NCLT Rules, 2016, restricts the power and functions of the President to allow such transfer applications in such situations as is in this case. 14. Before proceeding further, it will be useful to extract the provisions of Section 60(2) of the Insolvency and Bankruptcy Code noted as follows: "Section 60: Adjudicating Authority for corporate persons....
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....al (AT) (Insolvency) No. 58 of 2023, Ankit Miglani v. State Bank of India, after an exhaustive consideration of the scheme and scope of Section 60(1), (2) and (3) of the Insolvency and Bankruptcy Code, 2016, decided on 19.04.2023, that Section 60(2) of the Code is mandatory in nature and admits of no discretion. It was held that: XXX The Scheme of the Code as per Section 60 is that Adjudicating Authority, in relation to insolvency resolution and liquidation for corporate persons including corporate debtors and personal guarantors in the NCLT having territorial jurisdiction over the place where the registered office of a corporate person is located. The Corporate Person in the present case is Uttam Galva Metallics Limited, whose registered office admittedly is in the State of Haryana. Sub-section (2) of Section 60 contains an addition to Section 60(1), which provides that 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 process of a corporate guarantor or personal guarantor shall be filed before such National C....
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....y of Section 60(2). 9. Section 60(2) begins with expression 'Without prejudice to sub-section (1)' thus provision of Section 60(2) are without prejudice to Section 60(1) and are supplemental to sub-section (1) of Section 60. 10. Sub-Section 1 of Section 60 provides that Adjudicating Authority in relation to Insolvency or Liquidation for Corporate Debtor including Corporate Guarantor or Personal Guarantor shall be the NCLT having territorial jurisdiction over the place where the Registered Office of the Corporate Person is located. The substantive provision for an Adjudicating Authority is Section 60, sub-Section (1), when a particular case is not covered under Section 60(2) the Application as referred to in sub-section (1) of Section 60 can be very well filed in the NCLT having territorial jurisdiction over the place where the Registered Office of corporate Person is located." 18. As noted by this Appellate Tribunal in above noted judgments, we find that it has been unequivocally laid down that where a Corporate Insolvency Resolution Process of the Corporate Debtor is pending before a particular Bench of the National Company Law Tribunal, any application relati....
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....ch" per Rule 2(7) of NCLT Rules 2016: "bench means a bench of the tribunal constituted under Section 419 of the Act and includes circuit benches constituted by the President with prior approval of the Central Government to sit at such other geographical locations as may be necessary, having regard to requirements." 21. The perusal of the above legal position makes things very clear. Rule 16(d) of the NCLT Rules 2016, administratively equips the President NCLT with sufficient power to transfer any case from one bench to the other bench. Further, the power of President NCLT is not restricted nor clouded to any territorial location. Rather the President NCLT is empowered to transfer a case as per the criteria laid down in section 60(2) of the Code, which empowers to transfer proceedings against personal guarantor from some other bench to where the proceedings against the Corporate Debtor were going on. We note that it will create anomalous situations by a narrow interpretation that Rule 16(d) restricts it to the same territorial jurisdiction as has happened in this particular case. 22. We thus observe that a combined reading of Section 60 of the Code, Rule 16 (d) and Rule 2(7) o....