Appellate Tribunal sets aside order, directs fresh hearing of Section 7 application.

The Appellate Tribunal allowed the appeal, setting aside the order dated 28.02.2023, and directed the Adjudicating Authority to hear the Section 7 application afresh, considering the reply and rejoinder filed by the parties. The Appellant was granted a timeline to rectify any filing defects, with the matter scheduled for a decision on 03.07.2023 in compliance with the law.

---

---

Issues involved:
The issues involved in the judgment are the admission of a Section 7 application by the Adjudicating Authority, the filing of a Writ Petition before the High Court, the consideration of a reply by the Adjudicating Authority, and the subsequent setting aside of the order dated 28.02.2023.

Admission of Section 7 Application:
The Appellate Tribunal heard the appeal against the order admitting the Section 7 application filed by the Financial Creditor. The Adjudicating Authority had initially closed the right of the Appellant to file a reply, leading to the Appellant filing a Writ Petition before the High Court.

Writ Petition before High Court:
The High Court, in response to the Writ Petition filed by the Appellant, directed that the Appellant's reply, filed on 29th November 2022, be placed on record before the NCLT for further consideration. The High Court emphasized the importance of allowing the Petitioner to defend its position in a case where the consequences of an order under Section 7 of the IBC could be significant.

Consideration of Reply by Adjudicating Authority:
The Adjudicating Authority had passed an order admitting the Section 7 application without considering the reply filed by the Corporate Debtor on 29.11.2022. The Appellate Tribunal found that the Adjudicating Authority erred in not taking into account the reply, especially when the Financial Creditor had filed a rejoinder. The Tribunal directed the Adjudicating Authority to consider the reply and the rejoinder afresh, setting aside the previous order.

Setting Aside of Order and Directions:
The Appellate Tribunal allowed the appeal, setting aside the order dated 28.02.2023. It directed the Adjudicating Authority to hear the Section 7 application afresh, taking into consideration the reply and rejoinder filed by the parties. The Appellant was given a timeline to cure any defects in the filing, and the matter was scheduled to be heard on 03.07.2023 for a decision in accordance with the law.

---