The Adjudicating Authority is not a Civil Court to decide the breach of the contract between the parties – M/s Saregama India Limited Vs. M/s Home Movie Makers Private Limited – NCLAT
In this case, NCLAT held that under the IBC, the Adjudicating Authority or Appellate Tribunal will not go into the aspects of the veracity of the agreement, its breach, void, voidable etc. The Adjudicating Authority is not a Civil Court to decide the breach of the contract between the parties. The IBC is a code by itself and will have to go strictly by the provisions of the Code, whether a claim is made under Section 9 by the Operation Creditor and under Section 7 by Financial Creditor and under Section 10 by a Corporate Applicant. The Appellant having issued notice under Section 8(1) of the IBC, however filed an Application under Section 7 of IBC for the reasons best known to the Appellant.
