Ambootia Tea Exports Private Limited & Ors. Vs Rani Sati Abasan Private Limited (Calcutta High Court)
Material Facts
The respondent instituted a suit for recovery of money against the appellants on December 12, 2022, alleging that they were jointly and severally liable for money lent and advanced to appellant No. 1. Prior to the institution of the suit, proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) had been initiated against appellant Nos. 2 and 3 before the NCLT. The NCLT had initially rejected those proceedings on September 22, 2021, but the NCLAT revived them by order dated May 27, 2022. The proceedings were ultimately admitted by the NCLT on June 5, 2024.
The appellants challenged the judgment and decree dated February 5, 2026, by which the Single Judge rejected their application under Order VII Rule 11 CPC and allowed the respondent’s application under Order XII Rule 6 CPC, decreeing the suit.
Procedural History
The Single Judge dismissed the appellants’ application for rejection of the plaint under Order VII Rule 11 CPC and decreed the suit on admissions under Order XII Rule 6 CPC. The appellants preferred the present appeal challenging the decree.
Legal Issues
The Court considered:
- Whether the suit instituted during the operation of the interim moratorium under Section 96 of the IBC was maintainable.
- Whether the plaint was liable to be rejected under Order VII Rule 11(d) CPC.
- Whether the plaint could be separated between defendant No. 1 and the remaining defendants.
- The Court did not decide the issue whether the dispute constituted a commercial dispute under the Commercial Courts Act, 2015, after deciding the appeal on the issue arising under Section 96 IBC.
Relevant Statutory Provisions
