It is not permissible for the Registrar, NCLT, to go into the merits of a petition filed u/s 94 or 95 of IBC and/or to decide about maintainability | The Registrar does not discharge any adjudicatory or judicial function at this stage | Receiving of insolvency petitions is ministerial and procedural in nature | Adjudicatory process starts at the stage of Section 100 of the Insolvency Code, 2016 – Buoyant Technology Constellations Pvt. Ltd. Vs. Manyata Reallty and Ors. – Karnataka High Court
Hon’ble Karnataka High Court held that the function of registering the applications filed under Section 5 of the Insolvency Code is a ministerial function and a procedural act. This stage does not store any adjudicatory process. The role of the Registrar while registering the application under Section 95 of the Code is not adjudicatory in nature and this duty of the Registrar, NCLT was in no way adjudicatory trapping. Application of judicial mind towards merits has no place in discharge of a ministerial or clerical function. For the Registrar, it is not permissible at the time of registering the petition which is filed by the debtor or creditor. Adjudicatory function of adjudicatory authority commences under Part III of the Code, 2016 after submission of a recommendatory report by the resolution professional. The Registrar at the stage of receipt of the petition filed under Section 94 or 95 of the Code by the debtor or creditor, which is a stage even prior to Section 97 and 99 of the Code can decide on the maintainability of the petition by entering into merit and thus the realm of adjudication.