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2018 (12) TMI 652 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - territorial and the derivative/contingent jurisdiction vested with NCLT u/s. 60(4) of the Code to initiate insolvency/bankruptcy proceedings against Persona Guarantors (individuals), arrogates subject matter jurisdiction having regard to proceedings against individuals (in this case personal guarantors) supposed to be conferred upon DRT and then to be vested in NCLT on the footing that CIRP against the corporate debtor/principal borrower pending before this NCLT - Held that:- As to insolvency proceeding either under Presidency Towns Insolvency Act or under the Provincial Insolvency Act, the jurisdiction is conferred upon a Civil Court and the same is still in force, in case this Bench initiates insolvency proceedings under any of the insolvency Acts aforementioned, it will become nothing but usurpation into the jurisdiction of some other forum. Whenever any judgment is read and the ratio is culled out from the judgment, every sentence of the judgment has to be read in the context of the remaining portion of the judgment, reader shall not fork out a sentence, and spin another story disregarding the ratio decided and the context of that sentence, which is not the spirit of understanding the ratio of a judgment. Moreover as to jurisdiction is concerned, no court will confer jurisdiction upon somebody to whom legislature has not given such jurisdiction, moreover judges declare law, they do not make law. Therefore if the sentence referred by the Applicant Counsel from the judgement of Honourable Supreme Court is read along with the remaining portion of the judgment, it would be clear to understand that the Honourable Supreme Court has not held that the parties can initiate insolvency proceedings against personal guarantors before NCLT under either Presidency Towns Insolvency Act or Provincial Insolvency Act. As I said earlier, in the judgment supra, the Hon'ble Supreme Court has only held that actions against the personal guarantors are not covered by moratorium granted under Section 14 of the Code. In view of the reasons, we have not found any merit in the applications, henceforth these Applications are dismissed as misconceived
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