IBC: Calcutta HC Quashes NCLT Order Mandating Submission Of Record Of Default For Filing Sec 7 Applications
The Calcutta High Court struck down the order passed by the National Company Law Tribunal (NCLT) on May 12, 2020 which mandated submission of record of default from Information Utility in Section 7, Insolvency & Bankruptcy Code (IBC) applications, both prospectively as well as retrospectively. The single judge bench of Justice Shekhar B. Saraf stated that the impugned order is ultra vires the IBC, 2016 and has been enacted sans jurisdiction by the NCLT. The order was struck down by the Court on multiple grounds. In its foreword to the judgment, the Court however clarified that nothing prevents the Parliament to legislate the same change that was sought to be brought in by the NCLT by its order dated May 12, 2020.