The Supreme Court on Monday held that the National Company Law Tribunal has the jurisdiction for adjudication of the cases which relates to the insolvency of corporate debtors.
However, the Supreme Court also warned the NCLT and its appellate tribunal (NCLT) that they don’t use their powers to interfere in the matters of other courts, tribunals or forums, if the matter is not related to the insolvency of corporate debtor.
This verdict of the Supreme Court came when an appeal was filed by Gujarat Urja Vikas Nigam Ltd. against the order of the NCLT which put a stay over the termination of the power purchase agreement entered into by them with Astonfield Solar, Gujarat, which later went into insolvency.
The court observed that, for the success of an insolvency regime, it is necessary that insolvency proceedings are dealt within a timely, effective and efficient manner.
Lawcutor 