NCLT/NCLAT Drafting & Practice

Welcome to NCLT/NCLAT Drafting & Practice. Follow Adjudicating Authority, Territorial Jurisdiction and the Jurisdiction Paragraph, then practise in the learning system. Sign in and use the study header to open your authorised course. Select this published lesson. Start Course Tutor with Auto audio on: it teaches continuously, answers a typed question, then resumes. The jurisdiction paragraph. In drafting terms, jurisdiction is not an argument; it is a statement of facts with a statutory hook. Facts (invented). Meridian Steel Castings Private Limited was incorporated with its registered office in Nagpur, Maharashtra. Its board passed a resolution to shift the registered office to Raipur, Chhattisgarh, and the Regional Director's confirmation and the Registrar's registration of the shift were completed eight months before a lender, Coastline Finance Limited of Chennai, decided to file a Section 7 application. The loan was sanctioned and disbursed in Chennai, and the factory is in Nagpur. Reasoning. Step one: the applicant is a financial creditor and the debtor is a corporate person, so the forum is the NCLT and not the DRT. Step two: territorial jurisdiction follows the registered office on the date of filing. The shift to Raipur was complete and registered before filing, so the registered office is in Chhattisgarh. Step three: the Chennai sanction and the Nagpur factory are irrelevant to Section 60(1). Step four: identify the bench whose territorial jurisdiction covers Chhattisgarh by checking the current notification allocating States to NCLT benches; the drafter must not assume, because the allocation of States to benches has been revised by notification from time to time. Draft paragraph. > Jurisdiction of the Adjudicating Authority: The Corporate Debtor, Meridian Steel Castings Private Limited (CIN as stated in Annexure A-2), has its registered office at the address recorded in the master data of the Registrar of Companies as on the date of filing, which lies within the State of Chhattisgarh. The said State falls within the territorial jurisdiction of this Hon'ble Bench. This Hon'ble Tribunal is therefore the Adjudicating Authority under Section 60(1) of the Insolvency and Bankruptcy Code, 2016, and is competent to entertain the present application under Section 7 of the Code. Second example: the residuary jurisdiction trap. During the CIRP of the same company, the State pollution control board cancels its consent to operate on the ground of emissions violations. The resolution professional wishes to challenge the cancellation before the NCLT under Section 60(5). The correct advice is that the cancellation is an exercise of a public-law power on grounds unconnected with insolvency. Following the reasoning in Embassy Property, the challenge lies before the statutory appellate authority or the High Court. By contrast, if a private supplier terminated a critical contract only because the company entered CIRP, the reasoning in Gujarat Urja would support an application under Section 60(5). Ask Course Tutor to explain this step: Step three: the Chennai sanction and the Nagpur factory are irrelevant to Section 60(1). Say what you tried. Pause and try this source task. A company's factory is in Pune but its registered office is in Ahmedabad. Where does a Section 9 application lie? The source answer is: Before the NCLT bench having territorial jurisdiction over Gujarat, because Section 60(1) fixes jurisdiction by the registered office, not the factory. Compare your method and result, correct an error, then continue. Use Stop to end Course Tutor.