# In the matter of TATA Consultancy Services Limited Vs. Vishal Ghisulal Jain, Resolution Professional, SK Wheels Private Limited Civil Appeal No 3045 of 2020

> SC judgment dated 2021-11-23. Citation: TCN-2021-SC-00008. The case involves an appeal against the NCLAT's order upholding the NCLT's interim stay on the…

- **Court:** SC
- **Order date:** 23 Nov 2021
- **Citation:** TCN-2021-SC-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/tata-consultancy-services-limited-vs-vishal-ghisulal-jain-resolution-professiona-2cb964eb

## Summary

### Background

The case involves an appeal against the NCLAT's order upholding the NCLT's interim stay on the termination notice issued by Tata Consultancy Services Limited (TCS) to SK Wheels Private Limited, the Corporate Debtor, regarding a Facilities Agreement. TCS sought to terminate the agreement due to alleged breaches by SK Wheels. The NCLT and NCLAT intervened, citing the need to preserve SK Wheels as a going concern under the Insolvency and Bankruptcy Code (IBC). The Supreme Court is now considering whether the NCLT had the jurisdiction to stay the termination notice and whether the termination was related to the insolvency of the Corporate Debtor.

## Facts

Tata Consultancy Services Limited (TCS) and SK Wheels Private Limited (Corporate Debtor) entered into a Facilities Agreement on 1 December 2016, obligating SK Wheels to provide premises and facilities to TCS. TCS alleged multiple lapses by SK Wheels in fulfilling its contractual obligations, including non-compliance with specifications and deficiencies in housekeeping. TCS notified SK Wheels of these issues through emails and site visits between August 2018 and February 2019. TCS issued a termination notice on 10 June 2019, citing breaches of the Facilities Agreement. The Corporate Insolvency Resolution Process (CIRP) was initiated against SK Wheels on 29 March 2019. SK Wheels contested the termination notice, arguing that no material breaches had occurred and that a

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## Issues and analysis

### Issue 1: Whether the NCLT can exercise its residuary jurisdiction under Section 60(5)(c) of the IBC to …

**Ratio:** Section 60(5)(c) of the IBC grants residuary jurisdiction to the NCLT to adjudicate any

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**Reasoning:** The Supreme Court referred to its previous decisions, including Gujarat Urja, to clarify

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**Interpretation:** The Court interpreted Section 60(5)(c) narrowly, stating that it does not allow

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**Application:** In this case, the Court found that the termination of the Facilities Agreement

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## Parties

- **Judges:** Dr Dhananjaya Y…; A.S. BO…
- **Appellants:** TATA Consultancy…
- **Respondents:** S. K. Wheels…; Vishal Ghisulal…
- **Other parties:** Over Tu…

## Timeline

- **2015-08-24 — Build Phase A…**: Appellant and Corporate Debtor…
- **2016-12-01 — Facilities Ag…**: Appellant and Corporate Debtor…

## 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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