CLL_Art1735 - Taxpublishers.in

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The Tax Publishers Companies Act, 2013--Jurisdiction Under Insolvency Matters NCLAT Clarifies Penalty Jurisdiction : IBC Prevails Over Companies Act, 2013 in Insolvency Matters CS. Pragya Lalwani By this write-up, the learned Author analyses the verdict of NCLAT in the case of Ashish Chaturvedi v. Inox Leisure Ltd. 2022 TaxPub(CL) 1992 (NCLAT- New Del), according to which if an application is filed under the provisions of Insolvency and Bankruptcy Code, 2016 ('Code'), the penalties can only be imposed under the Code, and not the Companies Act, 2013 ('Act'). 1. Introduction An appeal has been filed by the appellants--former directors of E-Z Barter Private Limited--under section 61 of the Insolvency and Bankruptcy Code (IBC), challenging an order passed by the Adjudicating Authority on November 9, 2020. The appellants, Ashish Chaturvedi and Sanjay Kapoor, had been ex-directors of the suspended board of the corporate debtor. Respondent No. 1(Inox Leisure Limited), a limited company, is an operational creditor of the debtor. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Companies Act, 2013--Jurisdiction Under Insolvency Matters

NCLAT Clarifies Penalty Jurisdiction : IBC Prevails Over Companies Act, 2013 in Insolvency Matters

CS. Pragya Lalwani

By this write-up, the learned Author analyses the verdict of NCLAT in the case of Ashish Chaturvedi v. Inox Leisure Ltd. 2022 TaxPub(CL) 1992 (NCLAT- New Del), according to which if an application is filed under the provisions of Insolvency and Bankruptcy Code, 2016 ('Code'), the penalties can only be imposed under the Code, and not the Companies Act, 2013 ('Act').

1. Introduction

An appeal has been filed by the appellants--former directors of E-Z Barter Private Limited--under section 61 of the Insolvency and Bankruptcy Code (IBC), challenging an order passed by the Adjudicating Authority on November 9, 2020. The appellants, Ashish Chaturvedi and Sanjay Kapoor, had been ex-directors of the suspended board of the corporate debtor. Respondent No. 1(Inox Leisure Limited), a limited company, is an operational creditor of the debtor.