Case Note & Summary
The petitioners, Satyanarayan Bankatlal Malu and Ramesh Satyanarayan Malu, filed a writ petition under Article 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, challenging an order passed by the Additional Sessions Judge, 58th Court, Mumbai in Special Case No. 853/2020. The impugned order issued process under Sections 73(a) and 235A of the Insolvency and Bankruptcy Code, 2016 (IBC) on a complaint filed by the Insolvency and Bankruptcy Board of India (IBBI), a statutory body established under the IBC. The sole ground of challenge was that the learned Additional Sessions Judge did not have jurisdiction to entertain the complaint. The court considered whether the Sessions Court could take cognizance of offences under the IBC without a notification under Section 435 of the CrPC. The petitioners argued that the IBC does not create a special court or confer jurisdiction on Sessions Courts, and that Section 435 CrPC requires a notification by the State Government to confer jurisdiction on a Sessions Judge to try offences under a special law. The respondent IBBI contended that the IBC itself provides for trial by a Sessions Court. The court analyzed the provisions and held that in the absence of a notification under Section 435 CrPC, the Additional Sessions Judge lacked jurisdiction. Consequently, the court allowed the petition, quashed the impugned order, and set aside the proceedings in Special Case No. 853/2020.
Headnote
A) Criminal Procedure - Jurisdiction of Sessions Court - Section 435 CrPC - Complaint under IBC - The Additional Sessions Judge lacks jurisdiction to take cognizance of a complaint under Sections 73(a) and 235A of the Insolvency and Bankruptcy Code, 2016, unless a notification under Section 435 of the CrPC is issued conferring such jurisdiction. The court held that the impugned order issuing process was without jurisdiction and quashed it. (Paras 1-4)
Issue of Consideration
Whether the Additional Sessions Judge, Mumbai had jurisdiction to entertain a complaint filed by the Insolvency and Bankruptcy Board of India under Sections 73(a) and 235A of the Insolvency and Bankruptcy Code, 2016, in the absence of a notification under Section 435 of the Code of Criminal Procedure, 1973.
Final Decision
The petition is allowed. The impugned order dated 14th February 2022 issuing process in Special Case No. 853/2020 is quashed and set aside. The proceedings in Special Case No. 853/2020 are quashed.
Law Points
- Jurisdiction of Sessions Court
- Insolvency and Bankruptcy Code
- 2016
- Section 435 CrPC
- Section 73(a) IBC
- Section 235A IBC
- Complaint by statutory body
- Cognizance of offence
