Ex parte order set aside for lack of due service where the notice record failed to prove valid delivery.

An ex parte order may be set aside where the respondent shows that notice was not duly served and the record does not establish valid service under the procedural rules. The Tribunal found that the postal notice was returned with an endorsement indicating insufficient address or no such person, and there was no affidavit or other record proving delivery of the email notice. On that basis, due service on the corporate debtor was not established, so the ex parte order could not be sustained and was set aside.

---

---

Issues: Whether the corporate debtor was duly served with notice of the company petition, and whether the ex parte order was liable to be set aside.

Analysis: Rule 49(2) of the National Company Law Tribunal Rules, 2016 permits setting aside an ex parte hearing if the respondent satisfies the Tribunal that notice was not duly served or that sufficient cause prevented appearance. The record showed that the purported postal notice was returned with an endorsement that the address was insufficient or no such person was available, and there was no affidavit or record proving delivery of the email notice. In these circumstances, the Tribunal found that due service of notice on the corporate debtor had not been established. The order setting the matter ex parte was therefore found to have been passed without proper service and could not be sustained.

Conclusion: The application was allowed and the ex parte order was set aside.

Ratio Decidendi: An ex parte order may be set aside where the respondent proves that notice of the proceeding was not duly served and the record does not establish valid service in the manner required by the procedural rules.

---