# In the matter of Aaishwary Construction vs. Suntech Petro Pvt. Ltd. & Ors.

> NCLAT judgment dated 2023-07-11. Citation: TCN-2023-NCLAT-00390. The case involves an appeal against an order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLAT-00390
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aaishwary-construction-vs-suntech-petro-pvt-ltd-ors-d639a243

## Summary

### Background

The case involves an appeal against an order of the Adjudicating Authority (National Company Law Tribunal, New Delhi) which rejected an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) on the grounds of maintainability. The appellant, an operational creditor, had filed the application against three respondents, with M/s Ace Pipeline Contracts Pvt. Ltd. as Respondent No. 2. During the hearing, the appellant confined the CIRP to Respondent No. 2. The Adjudicating Authority dismissed the application because Respondent No. 2 was situated outside its territorial jurisdiction.

## Facts

Aaishwary Construction, the appellant and an operational creditor, filed an application under Section 9 of the IBC against three respondents, including M/s Ace Pipeline Contracts Pvt. Ltd. (Respondent No. 2). The appellant later confined the CIRP to Respondent No. 2. The Adjudicating Authority (National Company Law Tribunal, New Delhi) rejected the application because Respondent No. 2 was situated outside its territorial jurisdiction. The appellant appealed this decision to the NCLAT. The key fact is the location of Respondent No. 2 outside the jurisdiction of the NCLT, which formed the basis for the rejection of the application.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Section 9 application on the …

**Ratio:** The Adjudicating Authority has the power to decide whether it has the territorial

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**Reasoning:** The NCLAT agreed with the Adjudicating Authority's decision, stating that the

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**Interpretation:** This clarifies that the territorial jurisdiction of the NCLT is a crucial

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**Application:** In this case, since Respondent No. 2 was located outside the territorial

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Aaishwary…
- **Respondents:** Suntech Petro…

## Timeline

- **2023-07-11 — Hearing…**: Learned Counsel for the Appellant was heard, and the Appellant submitted that Respondent…
- **N/A — Application…**: The appellant filed an application under Section 9 against three respondents, including…

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