High Court entitled to Entertain a Writ Petition under Articles 226/ 227 of the Constitution of India against Orders passed by an NCLT for Public Law Matters

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Dec 30, 2019

High Court entitled to Entertain a Writ Petition under Articles 226/ 227 of the Constitution of India against Orders passed by an NCLT for Public Law Matters

SC in M/s Embassy Property Developments Pvt. Ltd. v. State of Karnataka & Ors.[1] dealt with the issue of whether High Courts ought to interfere under Articles 226/227 of the Constitution of India, with an order passed by the NCLT, Chennai Bench, in a proceeding under the IBC, ignoring the availability of a statutory remedy of appeal to the NCLAT and if so, under what circumstances.

SC held that Section 60(5) of the IBC, which confers upon the NCLT jurisdiction to decide any question of law or fact that arises out of or in relation to insolvency resolution, is broadly worded. However, any decision that is taken by the Government or statutory authority dealing with matters that fall within the realm of public law cannot be brought within the scope of Section 60(5) of the IBC. In the present case, the NCLT entertained an application against the Government of Karnataka for a direction to execute supplemental lease deeds for the extension of the mining lease, and therefore, the High Court of Karnataka was justified in entertaining the writ petition.

[1] Civil Appeal No. 9170 of 2019

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