Kerala High Court: Civil Courts Cannot Grant Injunctions in Matters Barred by IBC

The Kerala High Court has held that it can exercise its supervisory jurisdiction under Article 227 of the Constitution to set aside an ad interim injunction granted by a civil court in a suit barred by the Insolvency and Bankruptcy Code (IBC). 

Justice K. Natarajan emphasised that Sections 63 and 231 of the IBC prohibit civil courts from entertaining suits where the National Company Law Tribunal (NCLT) has jurisdiction. 

The Court ruled that any civil court order in such matters is illegal and without jurisdiction. The court directed trial courts to verify suit maintainability suo moto and permitted petitioners to approach the NCLT for relief.