NCLT Can Adjudicate Fraud And Debt Disputes Under IBC: Delhi High Court

The Delhi High Court held that the National Company Law Tribunal (NCLT) has wide jurisdiction under the Insolvency and Bankruptcy Code, 2016, to adjudicate disputes involving fraud, forgery, the existence of debt, and the validity of an assignment.

The Court ruled that civil courts cannot be invoked to derail insolvency proceedings through parallel litigation.

It observed that Sections 60(5), 65, and 75 of the IBC empower the NCLT to examine complex factual and legal issues, while Sections 63 and 231 expressly bar civil court interference.

Dismissing the suit as an abuse of process, the Court imposed costs for indulging in avoidable litigation.

[Roseland Buildtech v. Vihaan 43 Realty].