IBC cannot be used for forum shopping – Partha Paul Vs. Kotak Mahindra Bank Ltd. – NCLAT New Delhi
NCLAT set aside CIRP admission order of the Adjudicating Authority and held that the Bank/R1 is involved in forum shopping to the multiple Courts/Tribunals just to harass the Guarantor as it has moved the Hon’ble High Court of Calcutta at Calcutta to coerce the trust into paying of its debts and involving the Appellant in time consuming and expensive litigation at the behest of this concerned branch of the Bank/Respondent No.1. It is a settled law that the practice of Forum Shopping be condemned as it is an abuse of law. This case is beyond doubt falls under the category of Forum Shopping as it is a classic example of Forum Shopping when the Respondent Bank has approached one Court for relief but does not get the desired relief and then approached another court for the same or similar relief.
