# In the matter of Arvind Kumar Rastogi Vs. The National Company Law Tribunal CM(M) 350/2020 & CM APPL 11249/2020 (stay) and another appeal

> HC judgment dated 2020-08-24. Citation: TCN-2020-HC-00019. The case involves challenges to an order passed by the Registrar, National Company Law Tribunal…

- **Court:** HC
- **Order date:** 24 Aug 2020
- **Citation:** TCN-2020-HC-00019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/arvind-kumar-rastogi-vs-the-national-company-law-tribunal-cm-08a63161

## Summary

### Background

The case involves challenges to an order passed by the Registrar, National Company Law Tribunal (NCLT), which mandated that no new petition would be entertained in the NCLT without a record of default under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The High Court of Delhi is hearing petitions CM(M) 350/2020 and W.P.(C) 3322/2020, challenging the NCLT order. The High Court of Calcutta has struck down a similar notification of 12.05.2020 as ultra vires the Insolvency and Bankruptcy Code.

## Facts

The Registrar of the National Company Law Tribunal (NCLT) issued an order on 12.05.2020 mandating that no new petition would be entertained without a record of default under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioners challenged this order. The High Court of Calcutta, in 'Univalve Projects Pvt. Ltd vs. The Union of India & Ors.', struck down a similar notification as ultra vires the IBC. Subsequently, the NCLT modified its order on 13.08.2020, stating that the default record would be filed wherever available with the Information Utility. The Calcutta High Court's judgment was delivered on 18.08.2020. The petitioners argue that the NCLT acted without jurisdiction and exceeded its jurisdiction under Section 424 of the Companies Act, 2013.

## Issues and analysis

### Issue 1: Whether the order dated 12.05.2020 passed by the Registrar, National Company Law Tribunal, …

**Ratio:** The principle is that an order that is ultra vires the statute is invalid and cannot

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**Reasoning:** The Calcutta High Court has already struck down a similar notification as ultra vires the

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**Interpretation:** The interpretation of Section 7 of the IBC and related regulations is crucial.

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**Application:** Given that the Calcutta High Court has struck down a similar notification, the

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## Parties

- **Judges:** Sanjeev Sa…
- **Appellants:** ARVIND KUMAR…
- **Respondents:** THE NATIONAL…

## Timeline

- **2020-05-12 — NCLT Ord…**: Registrar, National Company Law Tribunal passed an order mandating that no new petition…
- **2020-08-13 — NCLT Modifi…**: National Company Law Tribunal modified its order, stating that the default record would…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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