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N. V. ANJARIA, K. V. ARAVIND
Buoyant Technology Constellations Pvt. Ltd. – Appellant
Versus
Manyata Reallty, A Partnership Firm – Respondent
JUDGMENT :
N.V. Anjaria, C.J.
Whether the aspect about the maintainability of petition filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 for its merit content could be examined by the Registrar of the National Company Law Tribunal at the stage of its filing and presentation;
Whether it is permissible in law for the Registrar of the National Company Law Tribunal (NCLT) to enter into even the elementary adjudicatory process in relation to controversy between the parties;
Whether receiving and registering the petition under Section 95 of the Insolvency Code is a ministerial function or also permits an adjudicatory act at that stage by the Registrar, NCLT;
At what stage the adjudicatory functions starts under the provisions of Chapter-III, Part-III of the Insolvency and Bankruptcy Code, 2016;
1.1 These are the questions arise for their analysis and decision while examining the challenge to the judgment and order dated 6th March 2024 of learned Single Judge, in the present appeal, preferred by the appellant-original respondent No.2, under Section 4 of the Karnataka High Court Act, 1961.
The Challenge
2. Learned Single Judge allowed the writ petition. It was declared that e-fili
The Registrar of NCLT performs a ministerial function when receiving petitions under Section 95 of the Insolvency Code, without adjudicating on their merits.
The court upheld the constitutional validity of Sections 95 to 100 of the IBC, affirming the role of the resolution professional as facilitators, and emphasized the necessity of adhering to natural j....
The judgment establishes that the Insolvency and Bankruptcy Code does not extend to partnership firms or their directors, and filing a petition under Section 95 against them is non est and illegal.
The NCLT has jurisdiction to adjudicate insolvency petitions against personal guarantors even in the absence of pending CIRP against the corporate debtor, as per the provisions of the Insolvency and ....
Section 97(3)-(5) requirement to direct Board for resolution professional nomination is directory; Adjudicating Authority may appoint directly from IBBI-shared panel under Rule 8(2) for personal guar....
Judicial determination in insolvency proceedings must follow due process, including adherence to principles of natural justice at the admission stage.
The Court emphasized the necessity for the Adjudicating Authority to properly consider objections and follow statutory procedures in insolvency resolution proceedings against personal guarantors.
Procedural compliance under Sections 95, 99, and 100 of the IBC is essential before admitting insolvency proceedings against personal guarantors.
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