Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 454 - AT - Insolvency and BankruptcyRejection of application under Section 9 of the ‘I&B Code’ - scope of Operational Creditor - the amount due has not been regarded as an ‘Operational Debt’ within the meaning of Section 5(21) of the ‘I&B Code’ - execution of decree - legality and viability to decide foreign decree - applicability of Foreign judgment - maintainability of application - Held 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. Applicability of Foreign judgment - judgement not pronounced by a Court of competent jurisdiction and founded on an incorrect view of international law - Held that:- The debt due to the Appellant does not come within the meaning of ‘Operational Debt’ and thereby, the Appellant cannot be held to be the ‘Operational Creditor’ within the meaning of Section 5(20) read with Section 5(21) of the ‘I&B Code’. The money claim do not relate to supply of goods or services and, therefore, the application under Section 9 by the Appellants against the ‘Corporate Debtor’ was not maintainable. The Adjudicating Authority has no jurisdiction to decide the question of legality and propriety of a foreign judgment and decree in an application under Sections 7 or 9 or 10 of the ‘I&B Code’ - question relating to maintainability is answered against the Appellants, they being not the ‘Operational Creditor’ - Appeal dismissed.
|