S. Vasudevan Vs IDBI Trusteeship Services Limited (NCLAT Chennai)
NCLAT Chennai held that provisions of section 60(1) of the Insolvency and Bankruptcy Code prescribes that question of jurisdiction has to be raised at the very first available instance and not at the stage when the proceedings have been concluded.
Facts- The Appellant, Mr. S Vasudevan, the Suspended Director of M/s. Tuscan Consultants and Developers Private Limited (Corporate Debtor), has questioned the Impugned Order dated 09.10.2023 as it was passed by the Adjudicating Authority, NCLT Chennai, whereby the Application filed by Respondent No. 1, IDBI Trusteeship Services Limited under Section 7 of the I & B Code, 2016, had been directed to be admitted, to be carried against the M/s. Tuscan Consultants and Developers Private Limited of which the present Appellant, is the suspended director.
Conclusion- Any CIRP proceedings is contemplated to be initiated by filing an application as against M/s. Tuscan Consultants and Developers Private Limited i.e., the Corporate Guarantor to the Principal Borrower (Corporate Debtor herein) it has to be initiated before the learned NCLT, Chennai, as contemplated u/s. 60(2) of I & B Code, 2016, where the proceedings after its initiation against Principal Borrower by filing of the application were yet to be concluded by its decision. Accordingly, the CIRP proceedings before the learned NCLT, Chennai, against Principal Borrower, would be treated to be pending and hence the order of Learned NCLT, Chennai, holding that the drawing of the proceedings against M/s. Tuscan Consultants and Developers Private Limited, the Corporate Guarantor, before the learned NCLT, Chennai, is maintainable before NCLT, Chennai in the light of the provision contained u/s. 60(2) of the I & B Code, 2016, does not suffer from any error.
