The Delhi High Court denied a writ petition as the Corporate Insolvency Resolution Process (CIRP) was centered outside its jurisdiction. This ruling reinforces territorial limits in bankruptcy-related proceedings.
Delhi HC on Jurisdiction in CIRP Proceedings
The Delhi High Court examined a writ petition linked to Corporate Insolvency Resolution Process (CIRP) proceedings occurring before the National Company Law Tribunal (NCLT) in Bengaluru. The petition challenged actions involving a Resolution Professional, but the Court found it lacked jurisdiction to adjudicate.
The decision was based on the principle that writ jurisdiction should respect the geographical limits of the NCLT. Since the critical proceedings were initiated in Bengaluru, the Delhi HC concluded that it should not interfere with matters which are properly situated within another division's competence.
This ruling underscores the procedural importance of establishing proper jurisdiction in insolvency cases. The court's unwillingness to entertain the writ emphasizes that practitioners must align petitions with the correct territorial courts.
Legal professionals should be cautious about jurisdictional bases in future cases, particularly concerning insolvency matters which are increasingly convoluted given the multi-regional nature of business operations.
Citations
- Delhi High Court
- CIRP Proceedings
