Case Note & Summary
The petitioner, Maheshwaran, former Managing Director of M/s Shree Vaishnodevi Mills Pvt. Ltd., filed a Civil Revision Petition under Article 227 of the Constitution of India before the Madras High Court. The petition sought directions to the National Company Law Appellate Tribunal (NCLAT), Chennai, to expeditiously dispose of Company Appeal (AT)(CH)(INS) No.443 of 2024 within a time frame. The petitioner had preferred the appeal before NCLAT under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC). The petitioner's counsel argued that since no appeal lies under Section 62 of IBC against routine adjournments, the High Court should entertain the revision petition to issue a direction for speedy disposal. The High Court examined the provisions of Section 62 of IBC, which provides for an appeal to the Supreme Court only against an order of NCLAT on a question of law. The court held that its jurisdiction is ousted under Section 62 of IBC to entertain a civil revision petition against proceedings pending before NCLAT. The court further observed that merely issuing a direction to dispose of the appeal would not serve the cause of justice, as it is for NCLAT to regulate its own proceedings. The court noted that if the High Court routinely issues such directions, it may cause inconvenience to NCLAT. Consequently, the court dismissed the civil revision petition, finding no merit in the petitioner's request.
Headnote
A) Insolvency and Bankruptcy Code - Jurisdiction of High Court - Section 62 of IBC, 2016 - The High Court held that its jurisdiction is ousted under Section 62 of the Insolvency and Bankruptcy Code, 2016, to entertain a civil revision petition against proceedings pending before the NCLAT, as the remedy lies only by way of appeal to the Supreme Court on a question of law. (Paras 4-6) B) Constitutional Law - Article 227 - Power of Superintendence - The High Court declined to issue directions for speedy disposal of the appeal pending before NCLAT, observing that routine issuance of such directions may cause inconvenience to the tribunal and that it is for the NCLAT to regulate its own proceedings. (Paras 5-6)
Issue of Consideration
Whether the High Court can entertain a civil revision petition under Article 227 of the Constitution of India seeking a direction to the NCLAT to expeditiously dispose of a pending appeal under the Insolvency and Bankruptcy Code, 2016, given the bar under Section 62 of IBC.
Final Decision
The Civil Revision Petition is dismissed. No costs.
Law Points
- Jurisdiction of High Court ousted under Section 62 of IBC
- 2016
- Article 227 cannot be used to direct NCLAT to expedite disposal
- High Court should not routinely issue directions for speedy disposal of pending appeals
