The High Court analyzed the distinction between ministerial and ...

High Court Clarifies Registrar's Role in Insolvency Petitions; NCLT Takes Adjudicatory Lead After Report Submission.

November 15, 2024

Case Laws     IBC     HC

The High Court analyzed the distinction between ministerial and adjudicatory functions in the context of filing a petition u/s 95 of the Insolvency and Bankruptcy Code, 2016. The court held that the Registrar of NCLT, while receiving and registering the petition, performs a ministerial function and does not have the authority to adjudicate on the maintainability or merits of the petition. The adjudicatory stage commences after the resolution professional submits a report to the NCLT. The court clarified that the automatic moratorium resulting from filing a Section 95 petition does not amount to abuse of process. The Registrar cannot reject the petition by examining its maintainability, as such adjudication falls within the domain of the NCLT at the appropriate stage. The High Court set aside the Single Judge's order allowing the writ petition.

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