Case Note & Summary
The appellant, G. Yoganand, filed an application before the National Company Law Tribunal (NCLT), Hyderabad, in CP (IB) No. 359/95/HDB/2022, seeking a declaration that the Assignment Agreement dated 04.03.2021 was null and void on the ground that it was insufficiently stamped. The NCLT rejected the application by an order dated 11.03.2025. Aggrieved, the appellant filed an appeal before the National Company Law Appellate Tribunal (NCLAT), Chennai. During the hearing, the NCLAT noted a peculiar fact: the appellant had also filed a Writ Petition No. 29803/2024 before the Hon'ble High Court of Telangana, Gajjala Yoganand v. State of Telangana & Ors., seeking the same relief—to declare the Assignment Agreement as insufficiently stamped and liable to be impounded. The NCLAT observed that the appellant had already invoked the jurisdiction of the High Court for the same cause of action. Consequently, the NCLAT held that the appeal before it was not maintainable and dismissed it as infructuous, without expressing any opinion on the merits of the case. The court did not delve into the validity of the Assignment Agreement or the stamping issue.
Headnote
A) Insolvency and Bankruptcy Code - Assignment Agreement - Stamping - The appellant sought to declare an Assignment Agreement dated 04.03.2021 as null and void for insufficient stamping before the NCLT. The NCLT rejected the application. The appellant also filed a writ petition before the High Court of Telangana seeking the same declaration. The NCLAT held that since the appellant had already approached the High Court for the same relief, the appeal before NCLAT was not maintainable and was dismissed as infructuous. (Paras 1-4)
Issue of Consideration
Whether the appeal challenging the rejection of an application to declare an Assignment Agreement as null and void for insufficient stamping is maintainable when the appellant has already sought the same relief before the High Court in a writ petition.
Final Decision
The appeal is dismissed as infructuous. No order as to costs. The connected pending IA, if any, is closed.
Law Points
- Doctrine of election
- Res judicata
- Abuse of process of law
- Stamping of documents
- Jurisdiction of NCLT
Case Details
2024 LawText (NCLAT) (01) 79
Company Appeal (AT) (CH) (Ins) No. 266/2025 (IA No. 756/2025)
Justice Sharad Kumar Sharma, Member (Judicial)
Mr. Adarsh Subramaniam & Mr. Abhishek, Advocates for Appellant; Mr. Palash Taing, Advocate for Respondent
M/s. Catalyst Trusteeship Ltd.
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Nature of Litigation
Appeal against rejection of application to declare Assignment Agreement null and void for insufficient stamping.
Remedy Sought
Appellant sought to set aside the Impugned Order dated 11.03.2025 of NCLT, Hyderabad, rejecting his application to declare the Assignment Agreement dated 04.03.2021 as null and void.
Filing Reason
Appellant contended that the Assignment Agreement was insufficiently stamped and therefore null and void.
Previous Decisions
NCLT, Hyderabad, rejected the application by order dated 11.03.2025. Appellant also filed Writ Petition No. 29803/2024 before the High Court of Telangana seeking the same declaration.
Issues
Whether the appeal is maintainable when the appellant has already sought the same relief before the High Court.
Submissions/Arguments
Appellant argued that the Assignment Agreement was insufficiently stamped and sought its declaration as null and void.
Respondent opposed the appeal, but the court did not record detailed submissions.
Ratio Decidendi
When a party has already invoked the jurisdiction of a High Court for the same relief, an appeal before the NCLAT on the same issue is not maintainable and is liable to be dismissed as infructuous.
Judgment Excerpts
This Company Appeal (AT) (CH) (INS) No. 266/2025, is circumscribed under a very peculiar facts and circumstances where the Appellant who happens to be the Applicant of IA (IBC) / 2208 / 2024, had preferred an Application before the Ld. NCLT, in a proceeding of the CP (IB) / 359 / 95 / HDB / 2022 contending thereof to declare the validity of the Assignment Agreement dated 04.03.2021 to be null and void, owing to the fact that it was insufficiently stamped.
Very peculiar fact which emerges for consideration by us and as it has been brought on record by the Ld. Counsel for the Appellant is that, for the purposes of seeking the relief for declaration of the Assignment Deed dated 04.03.2021 as it was sufficiently stamped, he had preferred a Writ Petition before the Hon'ble High Court of Telangana being Writ Petition No. 29803 / 2024, Gajjala Yoganand V. State of Telangana & Ors.
Procedural History
Appellant filed IA (IBC)/2208/2024 before NCLT, Hyderabad, in CP (IB) No. 359/95/HDB/2022 seeking declaration that Assignment Agreement dated 04.03.2021 is null and void for insufficient stamping. NCLT rejected the application by order dated 11.03.2025. Appellant also filed Writ Petition No. 29803/2024 before the High Court of Telangana for the same relief. Aggrieved by the NCLT order, appellant filed the present appeal before NCLAT, Chennai.
Acts & Sections
- Indian Stamp Act, 1899:
- Insolvency and Bankruptcy Code, 2016:
