# In the matter of Tejjinder Pal Setia vs. Kone Elevators India Pvt. Ltd. and Anr.

> HC judgment dated 2023-12-15. Citation: TCN-2023-HC-00005. The case involves a suit filed by Tejinder Pal Setia, a member of the erstwhile board of directors…

- **Court:** HC
- **Order date:** 15 Dec 2023
- **Citation:** TCN-2023-HC-00005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/tejjinder-pal-setia-vs-kone-elevators-india-pvt-ltd-and-anr-245f4227

## Summary

### Background

The case involves a suit filed by Tejinder Pal Setia, a member of the erstwhile board of directors of Chandigarh Overseas Private Limited (COPL), which is undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated by an order dated 2022-02-27 passed by the NCLT Chandigarh Bench. The suit challenges an assignment deed dated 2023-02-03, executed between defendant no.1 (KONE Elevators India Pvt. Ltd.) and defendant no.2 (Mr. Sanjeev Chadha), where defendant no.1 assigned the debt owed to it by COPL to defendant no.2. The plaintiff seeks a declaration that the assignment deed is invalid and not binding, a permanent injunction against defendant no.2 acting upon the assignment deed, and a direction to defendant no.1 to produce books of accounts

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## Facts

In 2013, Future Colonizers and Construction Private Limited (FCCPL) engaged KONE Elevators India Pvt. Ltd. (defendant no.1) to supply and install elevators at a project site owned by Chandigarh Overseas Private Limited (COPL). An invoice of Rs. 82,68,620/- was raised, and FCCPL made a partial payment of Rs. 10,30,000/-, leaving Rs. 72,38,620/- outstanding. Due to disputes, FCCPL abandoned the project. COPL acknowledged the debt and assured payment. A fresh contract was entered in 2015, with COPL acknowledging a debt of Rs. 92,70,000/-. As the dues remained unpaid, defendant no.1 filed a Section 9 petition under the Insolvency and Bankruptcy Code (IBC) against COPL in 2019. A settlement agreement was executed on 2021-09-27, where COPL agreed to pay Rs. 60,00,000/- in

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## Issues and analysis

### Issue 1: Whether the High Court has territorial jurisdiction to entertain the suit challenging the …

**Ratio:** The jurisdiction of a court is determined by the place where the cause of action arises.

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**Reasoning:** The court reasoned that the assignment deed was executed in Chandigarh between defendant

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**Interpretation:** The court interpreted Section 20 of the Code of Civil Procedure (CPC) regarding

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**Application:** The court applied the ratio to the facts by noting that the assignment deed was

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## Parties

- **Judges:** SACHIN…
- **Appellants:** Tejinder Pa…
- **Respondents:** Chandigarh…; Kone Elevator…
- **Other parties:** Kohi…

## Timeline

- **2013-01-01 — Initial Eng…**: Future Colonizers and Construction Private Limited (FCCPL) engaged KONE Elevators India…
- **2015-03-14 — Fresh Con…**: A fresh contract was entered into between COPL and defendant no.1, with COPL…

## Legal provisions

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

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