The Supreme Court has held that the National Company Law Tribunal (NCLT), while exercising jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), cannot adjudicate disputed questions of title to intellectual property if such determination goes beyond the scope of the approved resolution plan.
The Court held that NCLT cannot decide title disputes over assets, including intellectual property rights such as trademarks unless the dispute has a direct and proximate nexus with the insolvency resolution process.
“This Court examined the scope of Section 60(5). This Court held that under 60(5)(c) the Adjudicating Authority had jurisdiction to adjudicate disputes, which arise solely from or which relate to the…