2018 (9) TMI 1795 - HC - Insolvency and Bankruptcy

Seeking revival of the Respondent No.21 company and save it from liquidation by dispensing with the 80% shortfall for touching the criteria of 75% consent of Committee of Creditor for the Approval of Revival according to the provisions of the Insolvency and Bankruptcy Code, 2016. Held that - Having regard to the fact that the Petitioner is having alternative and efficacious remedy of appeal, we decline to interfere in the matter in exercise of jurisdiction under Article 226 of the Constitution of India. - Petition dismissed.

Summary

Issues:
1. Whether the High Court should entertain a petition seeking reliefs against an order passed by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 when an alternative remedy of appeal is available before the National Company Law Appellate Tribunal.

Analysis:
The petitioner sought various reliefs through the petition, including a writ of Certiorari or Nesarikar to quash and set aside the impugned judgment of the Tribunal, a writ of Mandamus directing the revival of a company, and a stay on the operation of the Tribunal's judgment. The respondent raised a preliminary objection, contending that the petitioner had an alternative and efficacious remedy of appeal before the National Company Law Appellate Tribunal and, therefore, the High Court should not entertain the petition.

The High Court considered the objection and noted that the petitioner indeed had an alternative and efficacious remedy of appeal available. In light of this, the High Court decided not to interfere in the matter under Article 226 of the Constitution of India. Consequently, the petition was dismissed, but the petitioner was granted liberty to challenge the impugned order before the Appellate Tribunal.

In conclusion, the High Court declined to entertain the petition seeking reliefs against the order passed by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 due to the availability of an alternative remedy of appeal before the National Company Law Appellate Tribunal. The dismissal of the petition was accompanied by granting the petitioner the liberty to pursue the challenge before the Appellate Tribunal, ensuring the petitioner's right to seek redressal through the appropriate legal channel.