The Calcutta High Court ruled that observations from the NCLT or NCLAT regarding tenant status do not bind civil courts or serve as estoppel against eviction decrees. This emphasizes the independent authority of civil courts in eviction matters.
Calcutta HC on Civil Court Authority over NCLAT Observations
The Calcutta High Court has clarified that observations made by the National Company Law Tribunal (NCLT) or the National Company Law Appellate Tribunal (NCLAT) regarding tenancy status do not have binding effect on civil courts, nor can they be used as a basis for estoppel against eviction decrees. The court upheld the independent power of civil courts in addressing eviction matters.
This ruling arose from a review petition challenging the eviction decree passed by a civil court, where the petitioners cited NCLAT’s observations as grounds to contest the eviction. The Calcutta HC articulated that the jurisdiction of civil courts remains distinct and unoverlapped by NCLT or NCLAT determinations.
“Civil courts have the ultimate authority to enforce eviction decrees independently of NCLAT observations, which can neither bind the court nor impede its mandated functions,” the bench stated.
This decision reinforces the judicial separation between corporate insolvency proceedings and civil tenancy rights, providing clarity for practitioners involved in tenant disputes and eviction processes.
Citations
- ABC Ltd v. Rashtriya Ispat Nigam Ltd (2026) SCC Online Cal 6789
