594
July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 68Debtor. Therefore, the NCLT accepted the
insolvency plea and directed the insolvency
professional to expedite the CIRP of the
Corporate Debtor without delay of even a
single day.
The panel of Judges at the NCLT also directed
the IRP/RP to make every possible effort to
complete the CIRP at the earliest possible time
as the matter being of National Importance
and the Corporate Debtor has been one of the
largest private sector airlines, the huge number
of work force of more than 20,000 employees,
large number of flights, having international
operations and the important sector in which
the Corporate Debtor is operating, serving
both Domestic and International markets.
Angle of cross border insolvency
During the proceeding, the Tribunal was
apprised that insolvency proceedings against the
Corporate Debtor have already been initiated
in the NOORD-HOLLAND DISTRICT Court.
The Administrator, in the Bankruptcy of Jet
Airways (India) Ltd. in Noord Holland District
Court filed a written submission before the
Tribunal in the capacity of Intervenor stating
that order for initiation of insolvency proceeding
have already been passed against the Corporate
debtor one month ago in other jurisdiction
and it will create a peculiar situation of two
insolvency proceedings running in parallel
against same Corporate Debtor. The intervenor
further stated that The Administrator appointed
by a competent court in the Netherlands and
Interim Resolution Professional appointed
by the Adjudicating Authority will compete
to take control and possession of assets, in
India and other jurisdictions, which is neither
in the interest of smooth functioning of the
insolvency process nor in the interest of the
stakeholders including the creditors.
The intervenor also stated that cross border
insolvency provisions, i.e., section 234 and
section 235 have not been given effect however,
there is no bar or prohibition under IBC for
the Adjudicating authority to recognize the
insolvency proceeding in a foreign jurisdiction.NCLT’s verdict
The Tribunal ruled that order passed by
Noord Holland District Court, the Netherland
for the company registered in India is nullity
ab-initio.
The Tribunal observed that in the instant
case, the Indian Government has no such
reciprocal arrangement with the Government
of Netherland. Therefore, none of the courts
have any jurisdiction to pass an order under
IBC, where the assets and properties of the
Corporate Debtor are situated in a country
outside their country.
The Tribunal also observed that there is no
provision and mechanism in the I&B Code,
at this moment, to recognize the judgment of
an insolvency court of any Foreign Nation.
Thus, even if the judgment of Foreign Court
is verified and found to be true, still, sans
the relevant provisions in the I&B Code, and
therefore, rejected to consider the order of
foreign court on record.
The Tribunal directed the IRP to proceed
in the matter with immediate effect without
being influenced by order of the Noord
Holland District Court, Netherland and file
the progress report every fortnightly. Demandofadvancepaymentfor
supplyofmedicinebyCIPLAto
stockiest wasn’tanti-competitive
practiceKalyan Chowdhary v. Cipla Ltd. [2019] 106
taxmann.com 176 (CCI)
Informant, being stockists/wholesaler of
pharmaceutical company, alleged that pharma-
company stopped supplying medicines to him
despite placement of orders. It was alleged
that same was done at behest of Bengal
Chemist & Druggist Association (BCDA),
because of case filed by him against BCDA
in NCLT and such conduct of pharmaceutical
company had resulted not only in denial ofWEEKLY REVIEW