2018 (11) TMI 1409 - Tri - Insolvency and Bankruptcy

Initiation of Corporate Insolvency Resolution Process - maintainability of application before this Tribunal - place of circle office to confer jurisdiction on the Tribunal - default of payment of operational debt - Held that - The operational creditor shown in Form 5, the circle office address of the corporate debtor as if it is its registered office. The demand notice in Form 3 was sent to the corporate debtor to three address. One of the address is at Gurgaon State of Haryana. It is true the Tribunal in whose jurisdiction registered office of the corporate debtor is situated an application under section 9 of I&B Code is to be filed before the said Tribunal. The place of the registered office of the corporate debtor confers jurisdiction on the Tribunal for application filed under section 9 of I&B Code. Circle office of the corporate debtor can t be taken for initiating action against corporate debtor under section 9 of the code by the operational creditor. May be the circle office of the corporate debtor is in Hyderabad. However the place of circle office can t confer jurisdiction on the Tribunal to proceed against corporate debtor. The place of registered office of corporate debtor is deciding factor regarding jurisdiction according to section 61 of I&B Code. Corporate debtor filed a copy of order passed by R.D at Page 109 of preliminary objections that the registered office of corporate debtor was shifted from New Delhi to Gurgaon State of Haryana. The registered office of corporate debtor was originally at New Delhi. It is clear from lease deed which is relied by the operational creditor. As on the date of filing the present petition. The registered office of the corporate debtor is situated at Gurgoan State of Haryana. Therefore operational creditor can t maintain this application filed under section 9 of I&B Code in this Tribunal. Operational creditor has to file application against corporate debtor before concerned NCLT having jurisdiction over the place of registered office of corporate debtor.

Summary

Issues:
Jurisdiction of the Tribunal over the application filed under section 9 of Insolvency and Bankruptcy Code based on the registered office of the corporate debtor.

Analysis:
The petition was filed by an Operational Creditor against a Corporate Debtor for defaulting in repayment, seeking admission of the petition under section 9 of the Insolvency and Bankruptcy Code. The Operational Creditor leased out terrace rights to the Corporate Debtor for installing a telecom tower, but the rental amounts remained unpaid, leading to the petition. The Corporate Debtor raised objections regarding the maintainability of the application, questioning the address provided by the Operational Creditor and arguing that the Tribunal lacked jurisdiction due to the discrepancy in the registered office address mentioned in the application.

The Corporate Debtor contended that the Operational Creditor wrongly indicated the registered office address in the application, and the Corporate Debtor's registered office was actually in Gurgaon, Haryana, not Hyderabad. The Corporate Debtor emphasized that the Tribunal's jurisdiction is based on the registered office location of the Corporate Debtor, as per Section 60(1) of the Insolvency and Bankruptcy Code. The Corporate Debtor highlighted that despite the circle office being in Hyderabad, it does not confer jurisdiction on the Tribunal, and the registered office address is the determining factor for jurisdiction as per Section 61 of the Code.

The Tribunal examined the evidence presented, including the order confirming the shift of the Corporate Debtor's registered office from New Delhi to Gurgaon, Haryana. Based on the lease deed and the current registered office location, the Tribunal concluded that the Operational Creditor should have filed the application before the NCLT having jurisdiction over the registered office in Gurgaon, Haryana. Therefore, the Tribunal ruled that it lacked jurisdiction to entertain the application and ordered the return of the application to the Operational Creditor for presentation before the appropriate NCLT with jurisdiction over the Corporate Debtor's registered office in Gurgaon, Haryana.