NCLT Cannot Decide Legality Of A Foreign Decree, Rules NCLAT [Read Judgment]
The National Company Law Appellate Tribunal has held that NCLT, the 'adjudicating authority' under the Insolvency and Bankruptcy Code, was not a 'court' or a 'tribunal' and hence cannot decide the legality of a foreign decree. "we hold that the Adjudicating Authority not being a Court or 'Tribunal' and 'Insolvency Resolution Process' not being a litigation, it has no jurisdiction to decide whether a foreign decree is legal or illegal. Whatever findings the Adjudicating Authority has given with regard to legality and propriety of foreign decree in question being without jurisdiction is nullity in the eye of law", held the judgment authored NCLAT Chairman Justice Sudhansu Joshi Mukhopadhyaya. In appeal, the NCLAT criticised the approach of NCLT in deciding the legality of foreign decree.
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