Tribunal overturns order barring Corporate Debtor's objections, stresses natural justice The National Company Law Appellate Tribunal set aside the Adjudicating Authority's order in a case where the Corporate Debtor was prohibited from filing ...
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Tribunal overturns order barring Corporate Debtor's objections, stresses natural justice
The National Company Law Appellate Tribunal set aside the Adjudicating Authority's order in a case where the Corporate Debtor was prohibited from filing objections, deeming it a violation of natural justice. The Tribunal emphasized the need to provide an opportunity for the Corporate Debtor to file a reply before a hearing, citing the Supreme Court decision in "Innoventive Industries Ltd. Vs. ICICI Bank and Ors., - (2018) 1 SCC 407." The appellant was granted ten days to file a reply, and the respondent was given one week to file a rejoinder, resulting in the disposal of the appeal.
Issues: Violation of natural justice in prohibiting objections by Corporate Debtor, failure to provide opportunity to file a reply before passing order.
In the judgment delivered by the National Company Law Appellate Tribunal, the respondent, 'Srei Equipment Finance Limited,' filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the appellant, 'Wianxx Impex Pvt. Ltd.' The Adjudicating Authority's order dated 30th July, 2018, was challenged by the appellant, contending that the Corporate Debtor was prohibited from filing objections, which was seen as a violation of natural justice. The respondent argued that an affidavit of compliance was requested to bring certain evidence on record, hence the order to not file objections. The Tribunal acknowledged that the Corporate Debtor cannot object to evidence filed by the Financial Creditor but emphasized the need for providing an opportunity to file a reply before a hearing, citing the decision of the Supreme Court in "Innoventive Industries Ltd. Vs. ICICI Bank and Ors., - (2018) 1 SCC 407." The Tribunal set aside the impugned order due to the Adjudicating Authority's failure to consider this provision, granting the appellant ten days to file a reply. Additionally, one week's time was granted to the respondent to file a rejoinder. The appeal was disposed of with these observations.
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