A German Company (Operational Creditor) filed application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against PQR Private Limited (Corporate Debtor) alleging that the 'Corporate Debtor' committed default

The present facts of the case is similar to the case of Excel Metal Processors Ltd vs. Benteler Trading International Gmbh & ANR. [NCLAT] . The Appellant (Corporate Debtor - Excel Metal) referred to the Agreement reached between the parties and submitted that as per the Agreement and as the Office of the Respondent is in Germany, any suit or case is maintainable only in the Court at Germany. No case can be filed in any Court in India. Therefore, the Appellant has raised the question of jurisdiction of the National Company Law Tribunal, Mumbai Bench in entertaining the application under Section 9 of the Insolvency and Bankruptcy Code (IBC). However, the NCLAT, New Delhi Bench was not inclined to accept the aforesaid statement as it is now settled and decided by the Appellate Tribunal in Binani Industries Ltd. vs. Bank of Baroda & Anr. Company Appeal (AT) (Insolvency) No.82 of 2018 etc. Decided on 14th November, 2018 wherein it was held that 'Corporate Insolvency Resolution Process'/ insolvency proceedings is not a 'suit' or a 'litigation' or a 'money claim' for any litigation; No one is selling or buying the 'Corporate Debtor' a 'Resolution Plan'; It is not an auction; it is not a recovery, which is an individual effort by the creditor to recover the dues through a process that had debtor and creditor on opposite sides; and it is not liquidation. The object is mere to get resolution brought about, so that the Company do not default on dues. Pursuant to Section 408 of the Companies Act, 2013, the National Company Law Tribunal has been constituted in different States. In terms of the said provision, the Central Government has notified and vested the power on respective National Company Law Tribunals to deal with the matter within its territory, where the registered Offices of the Companies are situated. As per Section 60(1) of the Insolvency and Bankruptcy Code (IBC), the Adjudicating Authority, in relation to insolvency resolution and liquidation for corporate persons including corporate debtors and personal guarantors thereof shall be the National Company Law Tribunal having territorial jurisdiction over the place where the registered office of the corporate person is located. As admittedly, the Registered Office of the 'Corporate Debtor' is situated in Mumbai, we hold that the National Company Law Tribunal, Mumbai Bench has the jurisdiction to entertain an application under Section 9 of the I & B Code and the Appellant cannot derive advantage of the terms of the Agreement reached between the parties. For the reasons aforesaid, and in absence of any merit, the Appeal was dismissed.