Bailable warrant for non-appearing noticee upheld where personal attendance was needed to protect estate assets.

A duly served noticee who remained absent could be compelled to appear where the Tribunal found her personal attendance necessary for effective adjudication and to protect the corporate debtor's estate. The Tribunal relied on its procedural powers under the Companies Act, 2013 and the Code of Civil Procedure to issue a bailable warrant, noting that funds had allegedly been transferred from the corporate debtor's account during the moratorium to her personal account. The ratio stated that, where service is complete and non-appearance threatens the proceedings or recovery of estate assets, a bailable warrant may be issued to secure attendance.

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Issues: Whether the Tribunal could issue a bailable warrant to secure the personal appearance of a noticee who had been duly served but remained absent.

Analysis: The noticee had been served through the Registry and by private notice, yet did not appear. The Tribunal recorded that an amount of Rs. 70 lakhs had been transferred during the moratorium from an account of the corporate debtor to her personal account, and considered her presence necessary to prevent frustration of the proceedings and to facilitate recovery of the corporate debtor's money. Invoking its powers under Section 424 of the Companies Act, 2013 read with Section 94 of the Code of Civil Procedure, 1908, the Tribunal directed issuance of a bailable warrant and permitted release on bail on execution of bond and surety.

Conclusion: The Tribunal was justified in issuing a bailable warrant to secure the noticee's appearance.

Ratio Decidendi: Where a person duly served fails to appear and the Tribunal considers personal attendance necessary for effective adjudication and protection of the estate, it may invoke its procedural powers to issue a bailable warrant.

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