Section 60: Adjudicating Authority for Corporate Persons
Section 60 determines the competent National Company Law Tribunal for corporate insolvency and liquidation and coordinates proceedings involving corporate debtors and their guarantors.
Meaning and legal definitions
Adjudicating Authority: Under section 5(1) of the Code, the National Company Law Tribunal constituted under section 408 of the Companies Act, 2013. Corporate person: Under section 3(7), a company, limited liability partnership or another person incorporated with limited liability under law, excluding a financial service provider. Corporate debtor: Under section 3(8), a corporate person who owes a debt to any person. Personal guarantor: Under section 5(22), an individual who is the surety in a contract of guarantee to a corporate debtor. Corporate guarantor: Under section 5(5A), a corporate person who is the surety in a contract of guarantee to a corporate debtor.
Section 60 explained, subsection by subsection
60(1): Which NCLT has jurisdiction?
The National Company Law Tribunal (NCLT) with territorial jurisdiction over the registered office of the corporate person is the Adjudicating Authority for insolvency resolution and liquidation of corporate persons, including corporate debtors and their personal guarantors. Jurisdiction is ordinarily determined by the registered office, not the location of creditors or assets.
60(2): Proceedings involving guarantors
Where a corporate insolvency resolution process or liquidation proceeding of a corporate debtor is pending before an NCLT, an application concerning insolvency resolution, liquidation or bankruptcy of its corporate guarantor or personal guarantor, as applicable, is filed before that NCLT. The references to corporate guarantors reflect the 2018 amendment and should not be omitted.
60(3): Transfer of existing proceedings
Relevant insolvency resolution, liquidation or bankruptcy proceedings concerning the corporate guarantor or personal guarantor pending in another court or tribunal stand transferred to the Adjudicating Authority handling the corporate debtor's insolvency resolution or liquidation.
60(4): Powers under Part III
For the purpose of subsection (2), the NCLT has the powers of the Debt Recovery Tribunal contemplated under Part III of the Code.
60(5): Residual and connected jurisdiction
NCLT may entertain or dispose of applications or proceedings by or against a corporate debtor or corporate person; claims by or against them, including claims concerning subsidiaries situated in India; and questions of priority, law or fact arising out of or relating to insolvency resolution or liquidation under the Code. This provision does not confer unrestricted jurisdiction over every dispute involving a company; the required connection to insolvency and limits recognized by courts remain important.
60(6): Moratorium and limitation
In computing limitation for a suit or application by or against a corporate debtor for which a moratorium order has been made under this Part, the period during which that moratorium operates is excluded. The application of this exclusion depends on the facts and the relevant moratorium order.
Practical implications
Before filing, identify the corporate debtor's registered office, confirm the territorial NCLT bench and determine whether a corporate insolvency resolution or liquidation proceeding is already pending. For guarantor matters, review the relevant provisions of Part III, applicable notifications, procedural rules and current NCLT filing requirements. A dispute involving a company does not automatically become an insolvency dispute merely because the company is undergoing CIRP.
Related statutory provisions
Section 7: initiation of CIRP by a financial creditor. Section 9: application by an operational creditor. Section 10: initiation by a corporate applicant. Section 14: moratorium during CIRP. Section 61: appeals to the National Company Law Appellate Tribunal. Section 179: Debt Recovery Tribunal jurisdiction for individuals and firms, subject to section 60. Section 238A: application of limitation law to proceedings or appeals before the NCLT, NCLAT, DRT or DRAT, as applicable.
Official legal resources
For authoritative updates and notifications, consult India Code, the IBBI legal framework, the NCLT website and the Ministry of Corporate Affairs. The MCA's 2019 IBC compilation is a historical reference and should not be treated as a current consolidated statute.
Frequently asked questions
Which tribunal hears corporate insolvency cases?
Ordinarily the NCLT with territorial jurisdiction over the registered office of the corporate person.
Can a guarantor's insolvency matter be heard by the same NCLT?
Yes. Section 60(2) provides for related guarantor applications before the NCLT where the corporate debtor's CIRP or liquidation is pending, subject to the applicable statutory framework.
Does Section 60(5) cover every dispute involving an insolvent company?
No. The jurisdictional nexus to insolvency resolution or liquidation and the limits established by judicial decisions must be considered.
Explore the Code: The Insolvency and Bankruptcy Code, 2016.
Editorial note: This article is general legal information, not a substitute for the latest statutory text, applicable notifications, rules or professional advice.