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Summary of Insolvency and Bankruptcy Code 2016 in Relation to Section 96 Court and B Civil Case
Key Points and Insights
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Section 96 of IBC 2016: This section pertains to the jurisdiction of courts regarding insolvency proceedings, specifically empowering the National Company Law Tribunal (NCLT) and, in certain cases, the civil courts to adjudicate insolvency matters Multiple sources, e.g., Ram Kishor Arora @ R. K. Arora VS Anubhav Kapoor - Punjab and Haryana, V. R. Swetha Naidu VS Secretary to Government, Ministry of Corporate Affairs, New Delhi - Madras.
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Civil Court Jurisdiction: Several references clarify that civil courts retain jurisdiction over certain proceedings, especially related to civil disputes or criminal cases, such as those under the Negotiable Instruments Act (Section 138), despite the existence of the IBC. Courts have held that insolvency proceedings under IBC do not automatically oust civil courts from jurisdiction Rakesh Bhanot VS Gurdas Agro Pvt. Ltd. - Supreme Court, Shiva Shakti Grains (India) Pvt Ltd VS Kaur Chand Munish Kumar - Punjab and Haryana, Anurodh Mittal S/o Ramdhari Mittal VS Rehat Trading Company - Madhya Pradesh.
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Section 94, 96, and 101 of IBC: These sections deal with the moratorium, stay of proceedings, and the powers of the adjudicating authority. Courts have emphasized that criminal proceedings under Section 138 of the NI Act are distinct from insolvency proceedings and are not automatically stayed under the moratorium provisions of IBC V. R. Swetha Naidu VS Secretary to Government, Ministry of Corporate Affairs, New Delhi - Madras, Shiva Shakti Grains (India) Pvt Ltd VS Kaur Chand Munish Kumar - Punjab and Haryana.
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B Civil Case: Civil cases, including those for recovery or disputes related to insolvency, are generally within the jurisdiction of civil courts unless explicitly barred or transferred to NCLT. The courts have also clarified that proceedings under criminal law (e.g., Section 138 NI Act) can continue independently of insolvency proceedings Rakesh Bhanot VS Gurdas Agro Pvt. Ltd. - Supreme Court, Anurodh Mittal S/o Ramdhari Mittal VS Rehat Trading Company - Madhya Pradesh.
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Interplay Between IBC and Criminal Proceedings: Courts have reiterated that criminal proceedings under Section 138 of the NI Act are independent and can proceed even during insolvency resolution, and the moratorium under IBC does not automatically suspend criminal cases Shiva Shakti Grains (India) Pvt Ltd VS Kaur Chand Munish Kumar - Punjab and Haryana, Anurodh Mittal S/o Ramdhari Mittal VS Rehat Trading Company - Madhya Pradesh.
Analysis and Conclusion
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The Insolvency and Bankruptcy Code 2016 primarily establishes the NCLT as the specialized tribunal for insolvency resolution, with Section 96 delineating its jurisdiction. Civil courts retain jurisdiction over non-insolvency civil matters and certain criminal proceedings, including those under the NI Act.
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There is a clear legal distinction between insolvency proceedings under IBC and civil/criminal cases, especially under Section 138 of the NI Act. The moratorium under IBC does not extend to criminal proceedings or civil cases unrelated to insolvency resolution.
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Courts have consistently held that proceedings under criminal law, such as for dishonored cheques, can proceed concurrently with insolvency processes, and the presence of insolvency does not automatically halt civil or criminal litigation unless explicitly provided.
References: - Ram Kishor Arora @ R. K. Arora VS Anubhav Kapoor - Punjab and Haryana, Rakesh Bhanot VS Gurdas Agro Pvt. Ltd. - Supreme Court, V. R. Swetha Naidu VS Secretary to Government, Ministry of Corporate Affairs, New Delhi - Madras, Shiva Shakti Grains (India) Pvt Ltd VS Kaur Chand Munish Kumar - Punjab and Haryana, Anurodh Mittal S/o Ramdhari Mittal VS Rehat Trading Company - Madhya Pradesh, B. Pattabhiraman VS Authorised Officer, State Bank of India, Coimbatore - Madras, VIJAY KUMAR JAIN VS STANDARD CHARTERED BANK - Supreme Court, Psl Limited VS . - Bombay, Ashok B. Jeswani VS Redington India Limited - Madras
Search Results for "Insolvency Bankruptcy Code 2016 in Section 96 Court and B Civil Case"
2023 0 Supreme(P&H) 257 • India - Punjab and Haryana
SANJIV BERRY
Section 138 of the NI Act - Jurisdiction of Criminal Court - Insolvency and Bankruptcy Code, 2016 - Sections 14 and 96 - [Section ... 138 of the NI Act, Sections 14 and 96 of the Insolvency and Bankruptcy Code, 2016] Fact of the Case: The petitioner ... in a complaint under Section 138 of t....
2025 4 Supreme 535 • India - Supreme Court
VIKRAM NATH, PRASANNA B. VARALE
(A) Consumer Protection Act, 1986 – Section 27 – Insolvency and Bankruptcy Code, 2016 – Sections 95 and ... (Paras 27, 28 and 29) (B) Consumer Protection Act, 1986 – Section 27 – Insolvency and Bankruptcy Code, 2016 ... (Paras 30, 33 and 34) (C) Consumer Protection Act, 1986 – Section 27 – Insolvency and Bankruptcy Code, #HL_S....
2025 0 Supreme(SC) 588 • India - Supreme Court
J. B. PARDIWALA, R. MAHADEVAN
(A) Criminal Procedure Code, 1973 - Section 482 - Negotiable Instruments Act, 1881 - Sections 138 and 141 - Insolvency and Bankruptcy ... Code, 2016 - Sections 94, 96, and 101 - Appeals against High Court orders dismissing petitions to stay proceedings under Section ... Act during insolvency proceedings - The court held that the moratorium under Section #HL_STAR....
2024 0 Supreme(P&H) 734 • India - Punjab and Haryana
PANKAJ JAIN
(A) Negotiable Instruments Act, 1881 - Sections 138 and 141 - Insolvency and Bankruptcy Code, 2016 - Sections 14 and 96 - Proceedings ... Act cannot be quashed due to moratorium under the IBC; personal guarantors remain liable despite corporate insolvency resolution. ... (Paras 11, 12) ... ... Ratio Decidendi: The court ruled that criminal proceedings under Section ... Lateron, application was filed under #HL_STA....
2024 0 Supreme(MP) 626 • India - Madhya Pradesh
GURPAL SINGH AHLUWALIA
(A) Criminal Procedure Code, 1973 - Section 482 - Negotiable Instruments Act, 1881 - Section 138 - Insolvency and Bankruptcy Code ... , 2016 - Section 96 - Application seeking to quash the condition of deposit for suspension of sentence during appeal - Interim moratorium ... ... ... Ratio Decidendi: The court ruled that criminal proceedings under Section 138 of the NI Act are distinct from civil....
2022 0 Supreme(Mad) 3633 • India - Madras
MUNISHWAR NATH BHANDARI, N. MALA
in reference to the application of certain provisions of the Insolvency and Bankruptcy Code, 2016, specifically Sections 12 and ... of the Insolvency and Bankruptcy Code, 2016 in respect of non-monetary obligations against the Corporate Debtor and judgments, orders ... Ratio Decidendi: The court's decision was based on the interpretation of the provisions of the Insolvency and Bankruptcy #HL_STAR....
2019 3 Supreme 184 • India - Supreme Court
ROHINTON FALI NARIMAN, NAVIN SINHA
(a) Insolvency and Bankruptcy Code, 2016 – Section 24 – Notes on clauses – Prescribing ... and Bankruptcy Code, 2016 – Section 30 and 31 r/w Regulation 36(2)(f), ... 37(d) and 7(2)(h), Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ... The CoC was constituted under Section 21 of ....
2018 0 Supreme(Bom) 2217 • India - Bombay
K.R.SHRIRAM
and Bankruptcy Code, 2016 - Section 231, 63, 238, 44, 66, 4(2) - Code of Civil Procedure, 1908 - Section 141 - Companies Rules 2016 ... 22 - Sick Industrial Companies Repeal Act, 2003, - Section 4(b) - Companies Act, 2013 - SARFAESI Act, 2002 - Section 34 – Insolvency ... to all proceedings in any court of civil jurisdiction - A combined reading will show that Company Court has a....
2019 0 Supreme(Mad) 1237 • India - Madras
R.SUBBIAH, B.PUGALENDHI
Insolvency and Bankruptcy Code,2016 – Section 14,14(3),52,52(4),53(1)(e)(i) and 53(1)(b)(ii) - Petitioners ... the stand of the petitioners that respondent may consider such representation before coming to any conclusion as mandated under Section ... liquidation, as stated earlier, there is no impediment to proceed against the personal properties of the guarantor - Therefore, court ... While so, the borrower-Company filed Company Petition under Section#HL_EN....
2023 0 Supreme(Mad) 3348 • India - Madras
G. JAYACHANDRAN
Sections 94, 96, and 101 of the Insolvency and Bankruptcy Code, 2016. ... INDEBTEDNESS - NEGOTIABLE INSTRUMENTS ACT, 1881 & INSOLVENCY AND BANKRUPTCY CODE, 2016 - Sections 138, 94 ... insolvency proceedings. ... Before the XXI Additional City Civil Court, Allikullam at Chennai, a memo was filed reporting pendency of insolvency....
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