Case Law Details
Anil Kumar Malhotra Vs Mahindra & Mahindra Financial Services Ltd. (NCLAT, Delhi)
Adjudicating Authority in relation to Insolvency Resolution shall be the National Company Law Tribunal having territorial jurisdiction over the place where the registered office of the corporate persons is located. The provisions of Insolvency and Bankruptcy Code, 2016 has to be given overriding effect by virtue of Section 238 of the Code. In view of the Section 60(1) read with Section 238 of the Code, the Appellant cannot rely on clause 24.12 to the Facility Agreement which provides jurisdiction to the Mumbai Courts. For filing Application under Section 7 of the Code, the provisions of Section 60(1) read with Section 238 of the Code shall be overriding clause 24.12 of the Facility Agreement to the above extent.
It is not denied that Corporate Debtor’s registered office is situated at ‘C20, South Extension, Part-II, New Delhi’ where the territorial jurisdiction to entertain such Application is with the NCLT, Principal Bench at New Delhi.
We thus are not persuaded to accept the submissions of Learned Counsel for the Appellant that Adjudicating Authority had no jurisdiction to entertain the section 7 Application. We thus do not find any error in the Order admitting the Section 7 Application on the ground of lack of jurisdiction as pressed before us.
FULL TEXT OF THE NCLAT DELHI ORDER
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