Supreme Court On Residual Power Of NCLT To Adjudicate Contractual Disputes: Trilegal Update

The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy..Trilegal Update.On November 23, 2021, a division bench of the Supreme Court in the Tata Consultancy Services Ltd. case clarified the precedent laid down in the Gujarat Urja case.It held that the National Company Law Tribunal under section 60(5)(c) of the Insolvency and Bankruptcy Code can restrain a party from terminating a contract only if such termination arises solely from or relates to the insolvency of the corporate debtor. Even if a contractual dispute arises in relation to the insolvency, a party can be restrained only if the contract is central to the success of the corporate insolvency resolution process i.e. only if such termination is likely to hamper the functioning of the corporate debtor as a going concern. If the termination is on any ground unrelated to the insolvency, the NCLT cannot exercise its residuary jurisdiction to adjudicate the contractual dispute..Click on the attachment to read the full report:.DISCLAIMERThis alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Supreme Court On Residual Power Of NCLT To Adjudicate Contractual Disputes: Trilegal Update

Supreme Court On Residual Power Of NCLT To Adjudicate Contractual Disputes: Trilegal Update

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