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Judgment
Justice Rakesh Kumar Jain (Oral)
This appeal is directed against the order dated 15.12.2022 passed by the ‘National Company Law Tribunal, New Delhi (hereinafter referred as to ‘the Adjudicating Authority’) by which an application bearing IA No. 6067 of 2022 filed in IB No. 205/ND/2021 under Section 19(3) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as to ‘The Code’) by the RP has been allowed without issuance of any notice.
Counsel for the Appellant has submitted that the Adjudicating Authority has committed a patent error of law for not issuing notice to the Appellant herein before deciding the aforesaid application. In this regard, he refers to Rule 37 of the National Company Law Tribunal Rules, 2016 which read as under:
“37. Notice to Opposite Party.-
(1) The Tribunal shall issue notice to the respondent to show cause against the application or petition on a date of hearing to be specified in the Notice. Such notice in Form No. NCLT. 5 shall be accompanied by a copy of the application with supporting documents….”
It is further submitted by counsel for the Appellant that not only the aforesaid Rules provides for a notice but also it is a settled principle of law that nobody should be condemned without hearing.
Counsel for the Respondent has fairly conceded to the principle of law that nobody should be condemned without hearing i.e. the principle of Audi Alteram Partem has to be followed.
In view thereof, the appeal succeeds and impugned order dated 15.12.2022 passed in IA No. 6067 of 2022 is hereby set aside.
However, the matter is remanded back to the Adjudicating Authority by restoring IA No. 6067 of 2022 with a direction to decide the said application by passing a speaking order after issuing notice to the Appellant herein.
The Adjudicating Authority is directed to decide the said application, after appearance of the parties before it and after notice given to the Appellant herein as early as possible but preferably within a period of 15 days.
The parties are directed to appear before the Adjudicating Authority on 16th August, 2023.