Roseland Buildtech Pvt. Ltd Vs Vihaan 43 Reality Pvt Ltd (Delhi High Court)
Delhi High Court held that issues relating to debt and fraud is within the jurisdiction of NCLT to be determined in accordance with IBC. Resultantly, the power of a civil court to entertain the present suit is, therefore, statutorily barred. Accordingly, the plaint is rejected.
Facts- The plaintiff/corporate debtor has filed this suit being aggrieved by the act of defendant no. 1/financial creditor filing a petition against the plaintiff, under Section 7 of the Insolvency and Bankruptcy Code, 2016, before the National Company Law Tribunal, New Delhi for the initiation of the corporate insolvency resolution process. The gravamen of dispute, essentially, lies in the plaintiff claiming the complete discharge of its obligations, and there not being a legally enforceable debt, on the basis of which proceedings under the IBC could be initiated by defendant no.1.
The plaintiff has sought, inter alia, a declaration that its obligations under the loan agreement dated 31.10.2006, entered into between the plaintiff and defendant no. 2, stand discharged; and that a ‘Business Transfer Agreement‘ dated 06.03.2020, entered into between defendant no. 1, defendant no. 2 and defendant no. 3, whereby the debt held by defendant no. 2 under the said loan agreement was assigned in favour of defendant no. 1, is void-ab-initio, and not binding upon the plaintiff.
