IBC Appellate Discipline

The Madras High Court examined a petition seeking judicial intervention in insolvency proceedings on allegations of fraud, collusion, and undervaluation. The petitioner requested the Court to direct the National Company Law Appellate Tribunal to examine these allegations in relation to actions of certain stakeholders involved in the insolvency process of a company. However, the Court emphasized that the Insolvency and Bankruptcy Code establish a complete hierarchy of remedies. Any person aggrieved by an order of the NCLT must first file an appeal before the NCLAT under Section 61 and thereafter approach the Supreme Court under Section 62 if further challenge is required. Since the petitioner had an effective statutory remedy available, the High Court held that a writ petition under Article 226 was not maintainable. The Court accordingly dismissed the petition while granting liberty to the petitioner to pursue the appropriate appellate remedy.