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Judgment
This application is filed under Section 424 of the Companies Act, 2013 read with Rules 11,14,15,32 & 51 of National Company Tribunal Rules, 2016.
The applicant stated that the Resolution Professional (RP) has filed an application for Preferential and Fraudulent Transactions vide IA No.5 of 2020. This Tribunal directed respondents to file reply therein. The applicant assigned the work of filing reply to one advocate and was under impression that it was done but the advocate has not filed the reply. The applicant is not part of the alleged transactions and no consent was given for it. Its involvement is not there, therefore, it is necessary to protect its interest. If its right is re-opened, no prejudice will cause to other stakeholders. Hence, prayed for allowing him to file reply.
The RP did not file any reply.
Heard Ld. PCS for the applicant and Ld. Counsel for the RP.
Considering the nature of the application, it is necessary that an opportunity is to be given to the applicant to defend himself against the serious allegations leveled by the RP. If the reply of the applicant is taken on record, no prejudice will cause to the RP or other stakeholders. However, as the applicant failed to file reply within time, the matter was unnecessarily prolonged. Therefore, the applicant must be saddled with some costs. Hence, we pass the following order:-
ORDER
Application, i.e. IA 1170/NCLT/AHM/2023, is allowed. ii) The applicant is directed to file reply within seven days from the date of this order, subject to payment of cost of Rs.10,000/- (Rupees ten thousand only) to the Prime Minister Relief Fund.
iii) It is further made clear that no further time will be granted either for payment of cost or for filing of reply.
Application is disposed of.