Section 63 of IBC : Section 63: Civil Court Not To Have Jurisdiction

Explanation using Example

Imagine a company, XYZ Pvt. Ltd., is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). One of its creditors, Mr. A, is unhappy with the resolution process and decides to approach a civil court seeking a claim against the company's assets. However, according to Section 63 of the IBC, the civil court does not have the jurisdiction to entertain this suit because the matter of insolvency and claims against the company's assets falls under the exclusive jurisdiction of the National Company Law Tribunal (NCLT). Therefore, Mr. A's suit in the civil court would be dismissed, and he would be directed to take his claim to the NCLT, which is the competent authority to deal with such matters under the IBC.