2019 (11) TMI 448 - HC - Insolvency and Bankruptcy

Jurisdiction - Dispensation of production of certified copy of the Order - petitioner submits that the National Company Law Tribunal has jurisdiction only in respect of debts and can entertain petitions only where debt is admittedly payable - HELD THAT - Admittedly, the respondent herein filed petition before the National Company Law Tribunal, Bengaluru, for damages and hence it has no jurisdiction to adjudicate the matter. Inspite of the same, the National Company Law Tribunal has admitted the petition and appointed a resolution professional. In pursuance of the said Order, the professional will take charge of the Company and in that event, the very purpose of filing the present writ petition will be frustrated. Relist this matter on 31.10.2019.

Summary

Issues involved:
1. Jurisdiction of the National Company Law Tribunal in respect of debts and other claims.
2. Validity of the order passed by the National Company Law Tribunal.
3. Request for dispensation of production of certified copy of the order.
4. Request for stay of operation of the impugned order.

Analysis:

1. Jurisdiction of the National Company Law Tribunal:
The petitioner's counsel argued that the National Company Law Tribunal only has jurisdiction over debts and can entertain petitions where debt is admitted. In this case, the respondent filed a petition for damages, which falls outside the tribunal's jurisdiction. Despite this, the tribunal admitted the petition and appointed a resolution professional. The petitioner contended that if the professional takes charge of the company, the purpose of the writ petition would be defeated.

2. Validity of the order:
The petitioner sought dispensation of the certified copy of the order passed by the National Company Law Tribunal on 24.10.2019. The counsel highlighted that the order was dictated in open court but not yet released. The petitioner expressed concerns about the tribunal's jurisdiction to adjudicate on claims other than debts and the potential consequences of the appointment of a resolution professional.

3. Dispensation of certified copy:
The petitioner's counsel filed an application seeking dispensation of the production of the certified copy of the order. The court accepted the cause shown in the application and allowed the dispensation of the certified copy for the present.

4. Request for stay of operation:
In response to the issues raised, the court issued an emergent notice to the respondent and granted a stay of operation of the impugned order passed by the National Company Law Tribunal until the next date of hearing. The matter was scheduled for a re-listing on 31.10.2019 to further address the concerns raised by the petitioner regarding the jurisdiction and validity of the tribunal's order.