Tribunal sets aside ex parte order due to notice failure, imposes cost on Corporate Debtor The National Company Law Tribunal, Kolkata Bench, considered setting aside an ex parte order due to notice service failure upon the Corporate Debtor. ...
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Tribunal sets aside ex parte order due to notice failure, imposes cost on Corporate Debtor
The National Company Law Tribunal, Kolkata Bench, considered setting aside an ex parte order due to notice service failure upon the Corporate Debtor. Despite finding the reasons unsatisfactory, the Tribunal allowed the application on the condition that a cost of Rs. 1 Lakh be paid to the Operational Creditor within 10 days, along with filing a reply affidavit. Failure to comply would result in dismissal. If requirements were met, the Operational Creditor had 7 days to file a rejoinder. The Tribunal stressed the importance of proper notice service and adherence to procedural requirements in legal proceedings. The case was scheduled for a hearing on 03/02/2020.
Issues: Setting aside an ex parte order due to failure of notice service.
In the judgment delivered by the National Company Law Tribunal, Kolkata Bench, the issue at hand was the setting aside of an ex parte order dated 20/12/2019 due to the failure of notice service upon the Corporate Debtor. The record indicated that notice was served via e-mail and post, with the e-mail notice being missed by the Corporate Debtor as the e-mail ID was not in use. The Director of the Corporate Debtor had overlooked the postal service due to personal engagements related to his daughter's marriage. The Tribunal found the reasons provided by the Corporate Debtor unsatisfactory for setting aside the ex parte order. However, to ensure a fair opportunity for defense and decision on merit, the Tribunal allowed the application on the condition that a cost of Rs. 1 Lakh be paid to the Operational Creditor within 10 days, along with filing a reply affidavit at the Registry within the same timeframe. Failure to pay the cost along with the reply affidavit would result in the dismissal of the application.
Moreover, if the cost was paid and the reply affidavit filed as directed, the Operational Creditor was required to file a rejoinder within 7 days of receiving the reply affidavit. The Tribunal emphasized that no further opportunity to file a rejoinder would be granted. The matter was listed for hearing on 03/02/2020, indicating a clear timeline for the subsequent legal proceedings in the case. The judgment highlighted the importance of proper notice service and the consequences of failing to adhere to procedural requirements in legal matters, underscoring the significance of timely and diligent communication in legal proceedings.
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