Registrar cannot determine NCLT jurisdiction: Delhi High Court

The question as to whether the National Company Law Tribunal (NCLT) has jurisdiction to entertain a particular case or not cannot be determined by the registrar in the administrative capacity, the Delhi High Court has said in a recent order.

It was hearing an appeal against registrar of NCLT which refused to even list a matter (application under Section 9 of the Insolvency and Bankruptcy Code) before the bench on the ground that the threshold of the pecuniary jurisdiction of the NCLT has now been amended by a notification dated 24 November 2020 from Rs 1 lakh to Rs 1 crore.

The petitioner in this case is Skillstech Services Private Ltd.

The High Court maintained that the registrar would have to place the matter before the appropriate bench of the NCLT, for the said question to be judicially determined. The appropriate bench of the NCLT would have to then take a considered view as to whether notice is liable to be issued in the matter or not.

The Delhi High Court also maintained that the question as to whether the notification dated 24 March 2020 applies to a particular petition that has been filed prior to the said notification or not is also a question to be determined by the Bench of the NCLT and not by the Registrar of the Tribunal.

The petitioner argued in the court that the question as to whether the NCLT has the pecuniary jurisdiction or not, cannot be decided by the Registrar of the NCLT, but in fact the same ought to be looked into and determined by an appropriate bench of the NCLT, after appreciating the fact situation involved.

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The petitioner relied on the order by NCLT, Kochi in Tharakan Web Innovations Pvt. Ltd. v. Cyriac Njavally, wherein the tribunal has held that if disputes had arisen prior to the outbreak of the pandemic, the said notification may not apply, as the notification cannot be made applicable retrospectively.

The High Court directed that the petition under section 9 of the IBC, moved by the Petitioner before the NCLT, should be placed by the Registrar before an appropriate bench for proceeding further in accordance with law.