Under Section 60(5)(c), NCLT’s jurisdiction extends to question of law or facts, ‘arising out of or in relation to the insolvency resolution or liquidation proceedings’. If contract of corporate debtor is terminated on non-insolvency grounds – such as non-payment of dues – will NCLT have jurisdiction to examine validity of the termination?
Jurisdiction of the NCLT under Section 60(5)(c) cannot be invoked where termination takes place on grounds unrelated to insolvency or legitimate invocation of ipso facto clause. NCLT will only have jurisdiction where the contract is central to success of CIRP and its termination will make certain death of the corporate debtor. See Gujarat Urja Vikas Nigam Limited v Amit Gupta AIR 2021 SC 123.