SANDEEP JAJODIA Vs. IDBI BANK LTD.
LAWS(ORI)-2022-1-72
HIGH COURT OF ORISSA
Decided on January 10,2022

Sandeep Jajodia Appellant
VERSUS
IDBI BANK LTD. Respondents

JUDGEMENT

ARINDAM SINHA, J. - (1.)Mr. Banerjee, learned senior advocate appears on behalf of petitioner and submits, inter alia, application was filed under sec. 95 in Insolvency and Bankruptcy Code, 2016 against his client seeking commencement of insolvency proceeding, on him being guarantor to a corporate person, against whom insolvency proceeding had already commenced. He refers to notification dtd. 1/6/2016. Entry 10 in the notification is constitution of National Company Law Tribunal (NCLT) at Mumbai having jurisdiction over, inter alia, state of Chhattisgarh. Subsequently, by notification dtd. 12/7/2018 NCLT, Cuttack was constituted, having jurisdiction over, inter alia, state of Chhattisgarh. There was corresponding deletion of state of Chhattisgarh in said earlier notification.
(2.)He submits, the insolvency proceeding commenced against the corporate person having registered office in State of Chhattisgarh, was instituted in NCLT, Mumbai. By order dtd. 10/8/2021, NCLT, Mumbai transferred the insolvency proceeding to NCLT, Cuttack. It is therefore that the insolvency proceeding against his client was initiated in NCLT, Cuttack because sec. 60 requires the proceeding, initiated against his client, to be lodged or initiated where the proceeding against the corporate person is pending. He submits, impugned order dtd. 22/12/2021, giving direction upon the resolution professional to exercise powers provided in sec. 99, in relation to his client, could not have been made by the Bench.
(3.)He submits, said notification dtd. 12/7/2018 did not provide for transfer, unlike provision made, inter alia, by Recovery of Debts Due to Banks and Financial Institutions Act, 1993, whereunder bank suits stood transferred to the tribunal. NCLT, Mumbai could not have transferred the case against the corporate person. Without prejudice to above contention he submits further, the proceeding initiated against his client is also barred by limitation.


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