Sufficient cause for setting aside an ex parte order is not shown by merely noting the wrong hearing date.

Rule 49 of the National Company Law Tribunal Rules, 2016 allows an ex parte order to be set aside only where notice was not duly served or the party was prevented by sufficient cause from appearing. On the stated facts, the appellant had already entered appearance, knew a reply was required, and gave only the explanation that counsel noted the wrong hearing date. The authority treated that explanation as insufficient on the record and declined to recall the ex parte order. The principle stated is that mere noting of an incorrect date, without more, does not by itself amount to sufficient cause for setting aside an ex parte order.

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Issues: Whether the appellant had shown sufficient cause under Rule 49 of the National Company Law Tribunal Rules, 2016 for recall of the ex parte order dated 07.06.2023.

Analysis: Rule 49 permits setting aside an ex parte hearing if notice was not duly served or if the party was prevented by sufficient cause from appearing when the matter was called. The appellant was aware of the proceedings, had entered appearance on 12.05.2023, knew that reply was required, and did not file the reply within time. The only explanation for absence on 07.06.2023 was that counsel noted the wrong date. On the record, the Adjudicating Authority found that this did not constitute sufficient cause, and that finding was based on the material before it.

Conclusion: The appellant failed to establish sufficient cause for recall of the ex parte order, and the refusal to reopen the matter was upheld.

Final Conclusion: The appellate challenge to the rejection of the recall application was unsuccessful, and the ex parte order removing the appellant as Resolution Professional remained undisturbed.

Ratio Decidendi: Mere noting of an incorrect hearing date, without more, does not by itself constitute sufficient cause for setting aside an ex parte order under Rule 49 of the National Company Law Tribunal Rules, 2016.

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