This court finds that the judgment relied by the plaintiff is distinguishable and the judgment relied by the defendants are squarely applicable in the instant case: Calcutta High Court

The above was opined by the Calcutta High Court in the case of Mukesh Jaiswal  v. Phool Chand Gupta and Ors, IA NO. GA/2/2022 in CS/211/2019 presided over by Honourable Justice Krishna Rao on 5th December, 2022 


The argument presented by the defendant in the current application is that the suit cannot be maintained because the National Company Law Tribunal has exclusive jurisdiction over the dispute and the plaintiff’s related prayer. 


In paragraph 28 of the plaint, the plaintiff unequivocally identified the defendants’ fraudulent act, and the aforementioned fraudulent act was not done when the plaintiff initiated proceedings before the NCLT. The plaintiff has also asked for additional remedy in relation to a perpetual injunction that concerns the plaintiff’s stake of the company.

In light of the foregoing, the Court determines that NCLT is ineligible to investigate the allegation of fraud in particular when the plaintiff has prayed for a declaration that the names of defendants nos. 2 and 3 were entered in defendant no. 4’s books and register in a fraudulent manner. The plaintiff has also prayed for a permanent injunction against defendant nos. 1 to 3. In light of this, the plaintiff’s lawsuit is maintainable.

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