Gloster Limited v. Gloster Cables Limited & Ors.

 NCLT cannot finally declare title to a disputed trademark under s. 60(5) IBC where the approved resolution plan itself recognises rival claims and no avoidance application was pursued.

 

Background

Fort Gloster Industries Ltd. (FGIL) entered CIRP under the Insolvency and Bankruptcy Code, 2016 (IBC). GlosterLimited emerged as the successful resolution applicant (SRA). During CIRP, Gloster Cables Ltd. (GCL) filed an application under s. 60(5) IBC, contending that the trademark “Gloster” was not an asset of FGIL and should be excluded from any approved resolution plan. The NCLT rejected GCL’s application and incidentally held that the trademark belonged to FGIL; the NCLAT reversed the title finding but upheld NCLT’s jurisdiction. Cross-appeals followed.

 

Issues Framed

1. Whether the NCLT, while exercising jurisdiction under s. 60(5)(c) IBC, could record a definitive finding on title to the trademark “Gloster”.
2. Whether, on the facts, the trademark could be treated as an undisputed asset of the Corporate Debtor passing to the SRA.
 

Court’s Reasoning

(i) Scope of s. 60(5)(c) IBC

• The Court reiterated that s. 60(5)(c) IBC confers wide but not plenary jurisdiction.
• The test is whether the question of law or fact “arises out of or in relation to” the insolvency resolution process, requiring a direct nexus with CIRP.
• Reliance was placed on Embassy Property Developments, Gujarat Urja, and Tata Consultancy Services to underline that NCLT cannot usurp jurisdiction over disputes de horsinsolvency.

(ii) Effect of the Approved Resolution Plan

• The approved plan itself explicitly recorded rival claims to the trademark and only stated the SRA’s belief that the assignment to GCL was illegal.
• No application for avoidance of preferential/undervalued transactions under ss. 43–45 IBC was filed by the Resolution Professional, nor was GCL put to notice in such proceedings.

(iii) Limits on Incidental Determinations

• The Court held that a fortuitous application by GCL could not be used to convert s. 60(5) proceedings into a final adjudication of trademark title, especially where the plan, approved by the CoC, did not conclusively vest such title in the SRA.
• Determination of trademark ownership was a substantive civil dispute, not one that arose solely from insolvency.
 

Decision / Disposition

• The Supreme Court set aside the NCLT’s declaration that the trademark “Gloster” was an asset of FGIL/SRA.
• It affirmed that, on the facts, NCLT could not conclusively determine title to the trademark under s. 60(5) IBC.
 

Ratio 

The residuary jurisdiction under s. 60(5)(c) IBC does not empower the NCLT to finally adjudicate disputed title to property where the resolution plan itself recognises rival claims and the issue does not arise solely from the insolvency resolution process. 

 

Case Details

• Citation: 2026 INSC 81
• Decided on: 22 January 2026
• Case Title: Gloster Limited v. Gloster Cables Limited & Ors.
• Court: Supreme Court of India
• Bench: K.V. Viswanathan, J.

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