NCLAT Dismisses Appeal Challenging Jurisdiction of NCLT Court Due to Procedural Concerns. Jurisdictional Challenge Raised Without Transfer Order, NCLT Directed to Resolve Issue Expeditiously.

Tribunals: National Company Law Appellate Tribunal Bench: New Delhi
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Case Note & Summary

The appeal was filed against an order dated 19.08.2026 by the NCLT, Mumbai, concerning a company petition assigned to Court No. 1 since its filing on 25.10.2018. An admission order was passed on 23.09.2019, which was later set aside by the NCLAT on 12.03.2020. The Supreme Court restored the application under Section 7 on 09.08.2021, directing the parties to appear on 24.08.2021. The appellant contended that the matter was transferred to Court No. III without a proper transfer application or order, leading to the filing of I.A No. 4404 of 2025 to challenge this jurisdiction. The NCLAT noted that another application, I.A No. 2601 of 2023, was scheduled for 14.10.2026, while I.A No. 4404 of 2025 was listed for 21.09.2026. The Tribunal disposed of the appeal by instructing NCLT to hear and resolve the jurisdictional challenge within three weeks, ensuring that the rights of both parties remained intact. The appeal and pending applications were thus closed.

Headnote

A) Company Law - Jurisdiction - Challenge to Jurisdiction of NCLT - National Company Law Tribunal, 2016, Section 7 - Appellant contested the jurisdiction of Court No. III without a transfer application or order. The Tribunal directed NCLT to resolve the jurisdictional challenge within three weeks, preserving the rights of both parties. Held that the matter should be addressed expeditiously (Paras 2-4).

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Issue of Consideration

Whether the jurisdiction of Court No. III of NCLT was properly invoked in the absence of a transfer application or order.

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Final Decision

The NCLAT disposed of the appeal, directing NCLT to hear and resolve I.A No. 4404 of 2025 within three weeks from 21.09.2026, while preserving the rights of both parties.

Law Points

  • Jurisdiction
  • Appeal
  • Company Petition
  • NCLT
  • I.A. application
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Case Details

2026 LawText (NCLAT) (09) 127

Comp. App. (AT) (Ins) No. 1753 of 2026

2026-09-18

Justice Yogesh Khanna, Barun Mitra, Ajai Das Mehrotra

Mr. Dhruv Surana, Mr. Arya Hardik, Mr. Ninad Laud, IVO M.S D’Costa, Mr. Gokula Krishnan

Irshat Ali

Cosmos Co - Operative Bank Ltd. & Anr.

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Nature of Litigation

Appeal against NCLT order regarding jurisdictional challenge.

Remedy Sought

Appellant sought to challenge the jurisdiction of NCLT Court No. III.

Filing Reason

Dispute over the transfer of the case to Court No. III without proper procedure.

Previous Decisions

Initial admission order set aside by NCLAT; Supreme Court restored application under Section 7.

Issues

Jurisdiction of NCLT Court No. III Proper procedure for transfer of cases

Submissions/Arguments

Appellant argued lack of transfer application or order for jurisdictional challenge. Respondents' arguments not detailed.

Ratio Decidendi

The Tribunal emphasized the necessity of following proper procedural norms for jurisdictional challenges in NCLT.

Judgment Excerpts

This appeal is filed against an order dated 19.08.2026 We dispose of this appeal by requesting the Ld. NCLT, Court No. III, Mumbai to hear and dispose of I.A No. 4404 of 2025 within three weeks from 21.09.2026.

Procedural History

The case originated with a company petition filed on 25.10.2018, followed by an admission order on 23.09.2019, which was set aside on 12.03.2020. The Supreme Court restored the application on 09.08.2021, leading to the current appeal.

Acts & Sections

  • Insolvency and Bankruptcy Code, 2016: Section 7
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