Tribunals and CommissionsDivision Bench(2023) 12 NCLAT CK 3638

Mr. Jasti Samba Siva Rao vs M/s Srei Equipment Finance Ltd. & Anr.

National Company Law Appellate Tribunal, CHENNAI Bench · Decided on 19 December 2023

HON’BLE JUDGES
Rakesh Kumar Jain, Member (Judicial) · Shreesha Merla, Member (Technical)
CASE NUMBER
Company Appeal (AT) (CH) (Ins) No. 440 of 2023

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Judgment

4 paragraphs · 348 words

O R D E R

19.12.2023: This appeal is directed against the order dated 01.12.2023 passed in Rst. A (IBC) 25/2023 by which CP No. 12/7/HDB/2021 which was earlier dismissed for non-prosecution has been restored. Counsel for the Appellant has submitted that on the one hand the Tribunal had directed the financial creditor to issue notice to the corporate debtor and to list the matter for 08.12.2023 but on the other hand allowed the application i.e. Rst. A (IBC) 25/2023 without giving notice to the appellant much less a hearing. Counsel for the Appellant has submitted that there is a complete violation of Rule 37 of the NCLT Rules, 2016 (for short ‘Rules’) as per which it is incumbent upon the tribunal to issue notice in every application or the petition to the non-applicant and in case there is a request made by the Respondent for reply to contest the application then an opportunity must be given to file the reply. A bare perusal of the impugned order would show that in this case the order has been passed without notice to the present appellant as it appears to have been passed on the first day when the application itself was listed which is in complete violation of Rule 37 (1) of the Rules.

Issue notice.

At this stage, Shri Anant Merathia, Advocate accepts notice and submitted that this appeal has become infructuous in view of the order passed by this court in CA (AT) (CH) (Ins) No. 439 of 2023 dated 12.12.2023. In rebuttal, Counsel for the Appellant submitted that this appeal has to be allowed because otherwise this order would remain alive on the record. Keeping in view the aforesaid facts and circumstances, the present appeal is hereby allowed and the Order dated 01.12.2023 is hereby set aside. The matter is remanded back to the Ld. Tribunal and parties are directed to appear before the tribunal on 22.12.2023. The tribunal shall decide the application Rst. A (IBC) 25/2023 after giving an opportunity to the present appellant and then pass a speaking order in accordance with law.