The Patna High has held that the Calcutta High Court constituted a committee to look into claims raised by investors of the company under Insolvency and Bankruptcy Code (IBC).
The Court opined that exercising jurisdiction by the Court only on the premise that the appellant is a resident of the State of Bihar would create multiplicity of litigations and lead to duplication of judicial orders.
The appellant is concerned with an investment made by him in different schemes floated by the respondent company-Alchemist Group of Companies company from 2012 to 2017. The appellant came before this Court with the writ petition and the Single Judge refused to exercise discretion.
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The court found that the Single Judge had specifically referred to a similar issue, agitated in CWJC No. 281 of 2019 (All India Investor’s and Field Member Association vs. The Union of India & Ors.). It was found that the Calcutta High Court had appointed a committee to look into the claim raised by various investors of the respondent company.
It was also noticed that there was an enactment made by the Bihar Protection of Interests of Depositors (in Financial Establishments) Act, 2002 wherein there was a remedy available to the appellant.
“We are not convinced that the said remedy under the statute would be efficacious, especially since the respondent is a company registered outside the State of Bihar,” the court said.
The court has dismissed the appeal and held that the appeal would not be maintainable. However, leaving liberty to the appellant to avail the alternate remedies even under the IBC, if it is still available.
Case Name : Ashok Kumar Singh V/s UOI & Anr.
Judicial Level & Location : Patna High Court
Case Number : Civil Writ Jurisdiction Case No.5053 of 2019
Date of Ruling : 17/07/2024
Ruling in favour of: Respondent
Coram: Chief Justice K. Vinod Chandran, Justice Partha Sarthy, Petitioner Advocate: Kumar Praveen
Respondent Advocate: Sarvesh Kumar Singh, AAG-13 Mr. Rajat Kumar Tiwary, AC to AAG-13 Mr. Pradeep Kumar, Advocate Mr. Sushant Praveen, Advocate Mr. Saket Tiwary
