HIGH COURT OF TRIPURA

AGARTALA

WP(C) (PIL) 04 of 2023

Smt. Sudipa Nath

D/o Mr. Sujit Kumar Nath,

Permanent resident of West Chandrapur,

PS: Dharmanagar, PO: Chandrapur,

District- North Tripura, PIN: 799251

Presently residing at Lake Chowmuhani,

Supari Bagan, Krishna Nagar, PIN: 799001.

----Petitioner(s)

Versus

1. Union of India

Represented by Ministry of Corporate Affairs Government of India,

having its office at Shastri Bhavan, New Delhi-110001

2. The Secretary, Ministry of Corporate Affairs

Having his office at Shastri Bhavan, New Delhi, 110001.

3. Insolvency Bankruptcy Board of India

Represented by its Chairperson, 2^nd Floor jeevan Vihar Building,

Parliament Street, New Delhi 110001.

---- Respondent(s)

For Appellant (s)

: Mr. Krishnan, Sr. Adv.

Ms. R. Guha, Adv.

Mr. Angshuman Khound, Adv.

For Respondent(s)

: Mr. B. Majumder, Deputy SGI

Date of hearing

: 18.01.2023

Date of pronouncement

: 18.01.2023

Whether fit for reporting

: YES

HON’BLE THE CHIEF JUSTICE (ACTING)

HON’BLE MR. JUSTICE ARINDAM LODH

Judgment & Order

The petitioner is a practicing advocate and a resident of state of

Tripura. The petitioner is before this court claiming public interest and no

direct or indirect personal motive /interest and prays as follows:

Page 2 of 16

(a)

This is an application under Article 226 of Constitution of India for

issuance of a writ of Mandamus and/or in the nature thereof to issue

appropriate orders or direction, directing the respondent to forthwith

take steps to declare Section 66(1) of the Insolvency and Bankruptcy

Code, 2016 as ultra vires on the vice of Article 14 of the Constitution of

India for being manifestly arbitrary and unconstitutional, unless to save

if from unconstitutionality and in consonance with the scheme and

object of IBC, scope thereof is enlarged by this Hon’ble Court by

expanding the powers and jurisdiction of the NCLT by enabling it to

declare fraudulent business transactions as void under Section 66

independent as void under Section 66 independent of Sections 43, 45,

47, 49 and 50.

(b)

This is an application under Article 226 of Constitution of India for

issuance of a writ of Mandamus and/or in the nature thereof to issue

appropriate orders or direction, directing the respondent to forthwith

take steps to declare section 66(1) of the Insolvency and Bankruptcy

Code, 2016 as ultra vires on the vice of Article 14 of the Constitution

of India for being, manifestly arbitrary and unconstitutional, unless to

save if from unconstitutionality and in consonance with the scheme and

object of IBC, scope thereof is enlarged by this Hon’ble Court by

expanding the powers and jurisdiction of the NCLT by enabling it to

entertain application under Section 66(1) on its merits even if filed by

any creditor or contributory of the Corporate Debtor;

(c)

This is also an application under Article 226 of Constitution of India for

issuance of a writ of Mandamus and/or in the nature thereof to issue

Page 3 of 16

appropriate orders or direction, directing the Respondent to forthwith

take steps to declare Section 66(1) of the Insolvency and Bankruptcy

Code, 2016 as ultra vires on the vice of Article 14 of the Constitution of

India for being manifestly arbitrary and unconstitutional, unless to save

it from unconstitutionality and in consonance with the scheme and

object of IBC, scope thereof is enlarged by this Hon'ble Court by

expanding the powers and jurisdiction of the NCLT by enabling it to

pass an Order making liable to make such contributions to the assets of

the corporate debtor as it may deem fit, not only against any persons

who were knowingly parties to the carrying on of the business of the

Corporate Debtor in such manner but also against other organizations

legal entities (other than the corporate debtor) with whom such

business was carried out;

(d)

In addit