# Univalue Projects Pvt. Ltd.  vs. The Union of India & Ors. W. P. No. 5595 (W) of 2020 With C.A.N. 3347 of 2020 and others petitions

> HC judgment dated 2020-08-18. Citation: TCN-2020-HC-00020. The writ petitions challenge an order dated May 12, 2020, issued by the Registrar of the National…

- **Court:** HC
- **Order date:** 18 Aug 2020
- **Citation:** TCN-2020-HC-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/univalue-projects-pvt-ltd-vs-the-union-of-india-ors-w-p-no-5595-d22b0512

## Summary

### Background

The writ petitions challenge an order dated May 12, 2020, issued by the Registrar of the National Company Law Tribunal (NCLT) at its Principal Bench in New Delhi. This order mandates that financial creditors must submit certain financial information as a record of default before the Information Utility (IU) as a precondition for filing new applications under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The order also applies retrospectively to pre-existing applications filed under Section 7 of the IBC, 2016, pending before various NCLT benches.

## Facts

Univalue Projects Pvt. Ltd. and Cygnus Investments and Finance Pvt. Ltd. filed writ petitions challenging an order issued by the Registrar of the NCLT, New Delhi, on May 12, 2020. The order mandates that financial creditors must submit a default record from the Information Utility (IU) when filing new applications under Section 7 of the IBC, 2016. This requirement also applies retrospectively to existing applications pending before the NCLT. The petitioners argue that the order is beyond the NCLT's jurisdiction and violates the IBC, 2016, and related regulations. They contend that the NCLT's order alters their substantive rights as financial creditors and imposes an additional mandatory requirement not prescribed by the IBC, 2016. The petitioners also argue that the

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## Issues and analysis

### Issue 1: Whether the scope of the powers of the NCLT and whether the exercise of the same in the impugned …

**Ratio:** The NCLT's powers are limited by the principles of natural justice, the provisions of the

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**Reasoning:** The court relies on the hierarchy of legal norms, stating that the provisions of the

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**Interpretation:** The NCLT's power to regulate its own procedure is circumscribed by the

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**Application:** The court finds that the impugned order is inconsistent with Section 7(3)(a) of

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## Parties

- **Judges:** Shekhar B.…
- **Appellants:** Univalue Projects…
- **Respondents:** The Union o…
- **Other parties:** 7th Edition…; NCLT Jurisd…; +7 more

## Timeline

- **2020-05-12 — Impugned Ord…**: Date of the order issued by the Registrar of the NCLT, New Delhi, mandating the…
- **2020-06-29 — Hearing…**: One of the dates on…

## 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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