The National Company Law Tribunal (NCLT), was formulated under the Insolvency and Bankruptcy Code, 2016 (IBC) to deal with insolvency and liquidation matters of corporate entities.
Experience has shown that litigants tend to approach the NCLT for redressal of all grievances against companies undergoing insolvency resolution or liquidation. However, does the NCLT really have such powers to deal with all and sundry matters concerning these companies?
The Supreme Court had the occasion to opine on the scope of NCLTs power under Section 60 (5) of the IBC in Embassy Property Developments Vs State of Karnataka and Gujarat Urja Vikas Nigam Vs Amit Kumar Gupta.
Insolvency resolution
In the Embassy case, the Supreme Court concluded that a matter…
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