GORENTALA KIRAN Vs. SECRETARY, FINANCE AND PLANNING DEPT.

JUDGEMENT

(1.) In this writ petition, a direction is sought either to the Debt Recovery Tribunal to receive the application filed under the Insolvency and Bankruptcy Code, 2016 (for short "the Code") or for the Senior Civil Judge concerned to entertain the application made under the Provincial Insolvency Act, 1920. Sec. 243(1) of the Code provides for the repeal of the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920.

(2.) Sec. 179 of the Code relates to the adjudicating authority for individuals and partnership firms; and under Sub-Section (1) thereof, subject to the provisions of Sec. 60, the adjudicating authority, in relation to insolvency matters of individuals and firms, shall be the Debts Recovery Tribunal having territorial jurisdiction over the place where the individual debtor actually and voluntarily resides, or carries on business, or personally works for gain; and can entertain an application under the Code regarding such person. Sec. 180(1) provides that no Civil Court or authority shall have jurisdiction to entertain any suit or proceedings in respect of any matter on which the Debts Recovery Tribunal or the Debts Recovery Appellate Tribunal has jurisdiction under the Code. Sec. 181(1) provides for an appeal from the order of the Debts Recovery Tribunal under the Code to the Debts Recovery Appellate Tribunal.

(3.) Part-II of the Code relates to Insolvency Resolution and Liquidation for Corporate Persons, and Sec. 4(1) stipulates that Part-II of the Code shall apply to matters relating to the insolvency and liquidation of corporate debtors where the minimum amount of default is Rupees one lakh. Sec. 7(1) of the Code enables a financial creditor, either by itself or jointly with other financial creditors, to file an application for initiating corporate insolvency resolution process against a corporate debtor before the adjudicating authority when a default occurs. The adjudicating authority in Part-II is the National Company Law Tribunal (NCLT) in terms of Sec. 60(1) of the Code.