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Writ petition before High Court against orders of NCLT not maintainable

In IDEAL SURGICALS vs NATIONAL COMPANY LAW TRIBUNAL, KOCHI, writ petition was filed before the Kerala High Court alleging that the appeals appeals and stay petitions of the Petitioner against the order of the NCLT in the matter of the Corporate Resolution of PVS MEMORIAL HOSPITAL are not being taken up by the NCLAT as the NCLAT is on leave. That the appeals have been accepted by the NCLAT, but are yet to be numbered and posted for admission. The Petitioners alleged that  in the meanwhile, if the resolution process is continued in accordance with the order of the NCLT, the appeals will be rendered infructuous. In such circumstances, the High Court can, in the interest of justice, exercise its jurisdiction under Article 226 to safeguard the interest of the petitioners, till the appeals are taken up for consideration.

Objecting to the petition, the Respondents refuted that the averment in the writ petitions that the appeals are not being taken up. The appeals are defective and will be taken up only after the defects are cured. The Respondents pointed out that the NCLAT is functioning and the appeals filed by other Operational Creditors against the NCLT order had come up for admission. However, no stay or even status quo order was granted. It is contended that interference by the High Court, in exercise of jurisdiction under Article 226 of the Constitution, will defeat the very objective of the Code, which has been enacted with a view to consolidate and amend the law relating to insolvency resolution. 

Referring to the decision of the Division Bench of Kerala High Court in Sulochana Gupta vs and others v. RBG Enterprises Pvt. Ltd and others, the High Court decided that writ petition under Article 226 against an order of the NCLT is not maintainable.



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