60. Adjudicating authority for corporate persons.—(1) 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.
(2) Without prejudice to sub-section (1) and notwithstanding anything to the contrary contained in
this Code, where a corporate insolvency resolution process or liquidation proceeding of a corporate debtor
is pending before a National Company Law Tribunal, an application relating to the insolvency resolution
or 1
[liquidation or bankruptcy of a corporate guarantor or personal guarantor, as the case may be, of such
corporate debtor] shall be filed before such National Company Law Tribunal.
(3) An insolvency resolution process or 1
[liquidation or bankruptcy proceeding of a corporate
guarantor or personal guarantor, as the case may be, of the corporate debtor] pending in any court or
tribunal shall stand transferred to the Adjudicating Authority dealing with insolvency resolution process
or liquidation proceeding of such corporate debtor.
(4) The National Company Law Tribunal shall be vested with all the powers of the Debt Recovery
Tribunal as contemplated under Part III of this Code for the purpose of sub-section (2).
1. Subs. by Act 26 of 2018, s. 29, for “bankruptcy of a personal guarantor of such corporate debtor” (w.e.f. 6-6-2018).
70
(5) Notwithstanding anything to the contrary contained in any other law for the time being in force,
the National Company Law Tribunal shall have jurisdiction to entertain or dispose of—
(a) any application or proceeding by or against the corporate debtor or corporate person;
(b) any claim made by or against the corporate debtor or corporate person, including claims by or
against any of its subsidiaries situated in India; and
(c) any question of priorities or any question of law or facts, arising out of or in relation to the
insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under
this Code.
(6) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963) or in any other law
for the time being in force, in computing the period of limitation specified for any suit or application by or
against a corporate debtor for which an order of moratorium has been made under this Part, the period
during which such moratorium is in place shall be excluded.
61. Appeals and Appellate Authority.—(1) Notwithstanding anything to the contrary contained
under the Companies Act 2013 (18 of 2013), any person aggrieved by the order of the Adjudicating
Authority under this part may prefer an appeal to the National Company Law Appellate Tribunal.
(2) Every appeal under sub-section (1) shall be filed within thirty days before the National Company
Law Appellate Tribunal:
Provided that the National Company Law Appellate Tribunal may allow an appeal to be filed after the
expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing the
appeal but such period shall not exceed fifteen days.
(3) An appeal against an order approving a resolution plan under section 31 may be filed on the
following grounds, namely:—
(i) the approved resolution plan is in contravention of the provisions of any law for the time being
in force;
(ii) there has been material irregularity in exercise of the powers by the resolution professional
during the corporate insolvency resolution period;
(iii) the debts owed to operational creditors of the corporate debtor have not been provided for in
the resolution plan in the manner specified by the Board;
(iv) the insolvency resolution process costs have not been provided for repayment in priority to all
other debts; or
(v) the resolution plan does not comply with any other criteria specified by the Board.
1
[(4) An appeal against a liquidation order passed under section 33, or sub-section (4) of section 54L,
or sub-section (4) of section 54N, may be filed on grounds of material irregularity or fraud committed in
relation to such a liquidation order.
(5) An appeal against an order for initiation of corporate insolvency resolution process passed under
sub-section (2) of section 54-O, may be filed on grounds of material irregularity or fraud committed in
relation to such an order.]
1. Subs. by Act 26 of 2021, s. 9, for sub-section (4) (w.e.f. 4-4-2021).
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62. Appeal to Supreme Court.—(1) Any person aggrieved by an order of the National Company
Law Appellate Tribunal may file an appeal to the Supreme Court on a question of law arising out of such
order under this Code within forty-five days from the date of receipt of such order.
(2) The Supreme Court may, if it is satisfied that a person was prevented by sufficient cause from
filing an appeal within forty-five days, allow the appeal to be filed within a further period not exceeding
fifteen days.
63. Civil court not to have jurisdiction.—No civil court or authority shall have jurisdiction to
entertain any suit or proceedings in respect of any matter on which National Company Law Tribunal or
the National Company Law Appellate Tribunal has jurisdiction under this Code.
64. Expeditious disposal of applications.—(1) Where an application is not disposed of or an order is
not passed within the period specified in this Code, the National Company Law Tribunal or the National
Company Law Appellate Tribunal, as the case may be, shall record the reasons for not doing so within the
period so specified; and the President of the National Company Law Tribunal or the Chairperson of the
National Company Law Appellate Tribunal, as the case may be, may, after taking into account the
reasons so recorded, extend the period specified in the Act but not exceeding ten days.
(2) No injunction shall be granted by any court, tribunal or authority in respect of any action taken, or
to be taken, in pursuance of any power conferred on the National Company Law Tribunal or the National
Company Law Appellate Tribunal under this Code.
65. Fraudulent or malicious initiation of proceedings.—(1) If, any person initiates the insolvency
resolution process or liquidation proceedings fraudulently or with malicious intent for any purpose other
than for the resolution of insolvency, or liquidation, as the case may be, the Adjudicating Authority may
impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to one
crore rupees.
(2) If, any person initiates voluntary liquidation proceedings with the intent to defraud any person, the
Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh
rupees but may extend to one crore rupees.
1
[(3) If any person initiates the pre-packaged insolvency resolution process—
(a) fraudulently or with malicious intent for any purpose other than for the resolution of
insolvency; or
(b) with the intent to defraud any person,
the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh
rupees, but may extend to one crore rupees.]
66. Fraudulent trading or wrongful trading.—(1) If during the corporate insolvency resolution
process or a liquidation process, it is found that any business of the corporate debtor has been carried on
with intent to defraud creditors of the corporate debtor or for any fraudulent purpose, the Adjudicating
Authority may on the application of the resolution professional pass an order that any persons who were
knowingly parties to the carrying on of the business in such manner shall be liable to make such
contributions to the assets of the corporate debtor as it may deem fit.
(2) On an application made by a resolution professional during the corporate insolvency resolution
process, the Adjudicating Authority may by an order direct that a director or partner of the corporate
1. Ins. by Act 26 of 2021, s. 10 (w.e.f. 4-4-2021).
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debtor, as the case may be, shall be liable to make such contribution to the assets of the corporate debtor
as it may deem fit, if—
(a) before the insolvency commencement date, such director or partner knew or ought to have
known that there was no reasonable prospect of avoiding the commencement of a corporate
insolvency resolution process in respect of such corporate debtor; and
(b) such director or partner did not exercise due diligence in minimising the potential loss to the
creditors of the corporate debtor.
Explanation.—For the purposes of this section a director or partner of the corporate debtor, as the
case may be, shall be deemed to have exercised due diligence if such diligence was reasonably expected
of a person carrying out the same functions as are carried out by such director or partner, as the case may
be, in relation to the corporate debtor.
1
[(3) Notwithstanding anything contained in this section, no application shall be filed by a resolution
professional under sub-section (2), in respect of such default against which initiation of corporate
insolvency resolution process is suspended as per section 10A.]
67. Proceedings under section 66.—(1) Where the Adjudicating Authority has passed an order under
sub-section (1) or sub-section (2) of section 66, as the case may be, it may give such further directions as
it may deem appropriate for giving effect to the order, and in particular, the Adjudicating Authority
may—
(a) provide for the liability of any person under the order to be a charge on any debt or obligation
due from the corporate debtor to him, or on any mortgage or charge or any interest in a mortgage or
charge on assets of the corporate debtor held by or vested in him, or any person on his behalf, or any
person claiming as assignee from or through the person liable or any person acting on his behalf; and
(b) from time to time, make such further directions as may be necessary for enforcing any charge
imposed under this section.
Explanation.—For the purposes of this section, “assignee” includes a person to whom or in whose
favour, by the directions of the person held liable under clause (a) the debt, obligation, mortgage or
charge was created, issued or transferred or the interest created, but does not include an assignee for
valuable consideration given in good faith and without notice of any of the grounds on which the
directions have been made.
(2) Where the Adjudicating Authority has passed an order under sub-section (1) or sub-section (2) of
section 66, as the case may be, in relation to a person who is a creditor of the corporate debtor, it may, by
an order, direct that the whole or any part of any debt owed by the corporate debtor to that person and any
interest thereon shall rank in the order of priority of payment under section 53 after all other debts owed
by the corporate debtor.
2
[67A. Fraudulent management of corporate debtor during pre-packaged insolvency resolution
process.—On and after the pre-packaged insolvency commencement date, where an officer of the
corporate debtor manages its affairs with the intent to defraud creditors of the corporate debtor or for any
fraudulent purpose, the Adjudicating Authority may, on an application by the resolution professional,
pass an order imposing upon any such officer, a penalty which shall not be less than one lakh rupees, but
may extend to one crore rupees.]