Analysis of NCLT Judgement in Cortica Manufacturing (India) Pvt. Ltd. vs. Victory Electricals Ltd.

Adjudicating Authority can take a cognizance of the Decree passed by the Civil Court under which the claim has been crystallised.

The Operational Creditor had filed an application under section 9 of IBC on the basis of the default committed by the Corporate Debtor in making payment of the decretal amount which is in the nature of operational debt.

Adjudicating Authority relied on CP/670/IB/2017 in the matter of Stanbic Bank Ghana Ltd. vs. Rajkumar Impex Pvt. Ltd. wherein it has been observed by the Coordinate Bench that there is no bar in taking cognizance of foreign and therefore, in view of the law laid down in the above noted case, it is concluded that the Adjudicating Authority can take a cognizance of the Decree passed by the Civil Court under which the claim has been crystallised and the Decree has been drawn in favour of the Plaintiff / Operational Creditor. In view of this, the issue raised by the Corporate Debtor stands rejected.

Judgement link : https://nclt.gov.in/sites/default/files/final-orders-pdf/VICTORY%20ELECTRICALS%20LTD.pdf