The Calcutta High Court found no territorial jurisdiction to hear the suit challenging the NCLT-ordered valuation and declined to interfere with the ongoing liquidation process. The ruling highlights the limitations of the High Court's jurisdiction in corporate insolvency matters.
Calcutta HC Returns Plaint Challenging NCLT Valuation
The Calcutta High Court recently dismissed a plaint that challenged the valuation ordered by the National Company Law Tribunal (NCLT) in a liquidation process. The Court found that it lacked territorial jurisdiction to try the suit and did not possess a legal mandate to interfere in the NCLT's ongoing proceedings.
The judgment emphasized that corporate insolvency matters must primarily be resolved within the framework established by the Insolvency and Bankruptcy Code (IBC), which designates the NCLT as the competent authority for such actions. The Court reiterated that any interference from the High Court could undermine the procedural integrity established by the statute.
By maintaining that it would not step into the realm of NCLT’s determinations, the Court reinforced the principle that challenges to proceedings already initiated cannot be sustained on jurisdictional grounds. The ruling serves as a reminder for practitioners about the necessity to adhere to the designated statutory platforms for adjudications.
“The Court held that it had no territorial authority to try the suit…”
This decision serves as a critical benchmark for future litigations involving challenges to NCLT actions, confirming that High Court interventions are significantly restricted in insolvency cases managed by the NCLT.
Citations
- Calcutta HC (2026) 1 CLJ 345
