High Court has no justification to direct the deferment of the CIRP in the exercise of its jurisdiction under Article 226 of the Constitution – Committee of Creditors of KSK Mahanadi Power Company Ltd. Vs. Uttar Pradesh Power Corporation Ltd. and Ors. – Supreme Court
In this case, the Hon’ble Telangana High Court, matter related to consolidated of CIRPs, directed petitioner to file an appropriate application before NCLT and raise all grounds available under law. It was also held that until such time, the Resolution Process shall be deferred.
The Hon’ble Supreme Court held that the High Court declined to grant the main relief which was sought in the petition for the consolidation of the CIRP of three corporate entities. After coming to that conclusion, there was absolutely no reason for the High Court to exercise its jurisdiction under Article 226 by directing the deferment of the CIRP. Such a direction under Article 226 breaches the discipline of the law which has been laid down in the provisions of the Insolvency and Bankruptcy Code 2016.