G. Jothipaul Vs Kanishk Gold Private Limited (Madras High Court)
The revision petition before the Madras High Court arose from an order of the Principal District Judge, Kanchipuram, rejecting a plaint at the stage of institution. The plaintiffs challenged the rejection, contending that the trial court had erred in refusing to number the suit and rejecting the plaint on the grounds of a jurisdictional bar under Section 231 of the Insolvency and Bankruptcy Code, 2016 and limitation.
The petitioners argued that the suit sought a declaration challenging certain sale deeds. Earlier, they had filed writ petitions under Article 226 of the Constitution of India before the High Court, but those petitions were dismissed with liberty to approach the National Company Law Tribunal (NCLT). However, the NCLT declined to entertain the matter, stating that it lacked the authority to grant the relief sought. Subsequently, the petitioners modified their relief and filed the present civil suit. In these circumstances, the Court held that the bar under Section 231 of the Insolvency and Bankruptcy Code would not prevent the petitioners from filing the suit.
Regarding limitation, the petitioners contended that although the sale deeds dated back to 2017, the properties were brought for sale by the Liquidator only in September 2024, and the attachment order was lifted by the Appellate Tribunal under the Smuggling Activities and Foreign Exchange Manipulations (SAFEMA), New Delhi, only in January 2024. Based on these facts, it was argued that the issue of limitation involved both factual and legal considerations and therefore could not be decided at the threshold stage.
