# In the matter of Deputy Director vs. Asset Reconstruction Company (India) Ltd. & Ors.

> HC judgment dated 2020-06-02. Citation: TCN-2020-HC-00031. The case involves a writ petition challenging an order passed by the National Company Law Tribunal…

- **Court:** HC
- **Order date:** 2 Jun 2020
- **Citation:** TCN-2020-HC-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/deputy-director-vs-asset-reconstruction-company-cca5fd40

## Summary

### Background

The case involves a writ petition challenging an order passed by the National Company Law Tribunal (NCLT), Hyderabad Bench-I, regarding applications filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC). The applications sought to set aside and grant a stay on a provisional attachment order. The Central Bureau of Investigation (CBI), Bangalore, registered three criminal cases against M/s Best and Crompton Engineering Project Ltd. and their officials for offences punishable under the Indian Penal Code, 1860, based on a complaint by a consortium of banks led by the Central Bank of India. The complaint alleged a criminal conspiracy involving officials of the said concern, who hatched a criminal conspiracy at Chennai and Hyderabad during the period

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## Facts

The Central Bureau of Investigation (CBI), Bangalore, registered three criminal cases against M/s Best and Crompton Engineering Project Ltd. and their officials for offences punishable under the Indian Penal Code, 1860, based on a complaint by a consortium of banks led by the Central Bank of India. The complaint alleged a criminal conspiracy involving officials of the said concern, who hatched a criminal conspiracy at Chennai and Hyderabad during the period from 2010 to 2013 with the object of defrauding the consortium of the bankers lead by the Central Bank of India. In furtherance of the said conspiracy, Central Bank of India was made to submit a fraudulent Letter of Credit and the amount sanctioned was diverted. The management of M/s Best and Crompton Engineering

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal (NCLT) has jurisdiction to adjudicate on matters related …

**Ratio:** The NCLT's jurisdiction is limited and does not extend to matters governed by the PMLA.

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**Reasoning:** The court reasoned that the NCLT's jurisdiction is derived from the IBC and is primarily

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**Interpretation:** The court interpreted the relevant sections of the IBC and the PMLA to

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** M.M. SUN…; KIRSHNAN RA…
- **Appellants:** Deputy Director,…
- **Respondents:** Viceroy Hotels…; Asset Reconstructi…

## Timeline

- **2010-01-01 — Criminal Con…**: Officials of a concern hatched a criminal conspiracy at Chennai and Hyderabad during…
- **2010-03-29 — Takeover of Ma…**: The management of M/s Best and Crompton Engineering Project Ltd. was taken over by two…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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