Bar of jurisdiction

Imagine a company in trouble. A lender has applied to the National Company Law Tribunal. The company’s promoter, unhappy, files a civil suit in the city civil court asking for an order stopping the process. If the civil court could grant it, the entire time-bound scheme of the Code would be a matter of who gets to a court first. Section 231, and its sister provisions in Part II, are the Code’s answer: civil courts are simply not the place for this.

In two minutes

Section 231 bars civil courts from any matter in which the Adjudicating Authority or the Board is empowered to pass an order, and bars any court or authority from granting an injunction against action taken or to be taken under such an order; ss.63 and 64(2) do the same for the NCLT and NCLAT in Part II.

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