Tribunal Upholds Decision Allowing Rejoinder Post-Hearing with Fee, Affirms No Rule Violation in Creditor Proceedings.

The NCLAT, Principal Bench, New Delhi, upheld the NCLT, Kolkata Bench's decision to allow a rejoinder to be taken on record after the Financial Creditor's hearing, upon payment of Rs.10,000. The Tribunal dismissed the appeal, affirming that no rule was violated and permitted the Appellant to make submissions regarding the rejoinder.

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Issues Involved:
The issue involves the Adjudicating Authority permitting the rejoinder to be taken on record after the conclusion of the hearing of the Financial Creditor without prior liberty sought for filing the rejoinder.

Summary:

The Appellate Tribunal, National Company Law Appellate Tribunal, Principal Bench, New Delhi, heard the appeal against the order passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, allowing the rejoinder to be taken on record upon payment of a cost of Rs.10,000. The Appellant challenged this decision, arguing that the rejoinder was filed after the conclusion of the Financial Creditor's hearing without prior permission. The Tribunal considered the submissions and the record.

The Adjudicating Authority justified its decision by stating that although the rejoinder should have been filed before the commencement of arguments, due to circumstances where the earlier lawyer failed to file it, the Financial Creditor changed its lawyer to contest the case further. The Adjudicating Authority believed that the Financial Creditor should not suffer due to the lawyer's lapse and allowed the rejoinder to be taken on record, noting that it would not prejudice the Corporate Debtor's plea of limitation.

The Tribunal, after reviewing the situation, upheld the Adjudicating Authority's decision to allow the rejoinder on record upon payment of the specified cost. It emphasized that while pleadings are typically completed before the hearing begins, in this case, the rejoinder was accepted during the hearing. The Tribunal concluded that there was no rule preventing such action by the Adjudicating Authority and decided not to entertain the appeal. However, it granted the Appellant an opportunity to make submissions regarding the rejoinder. Therefore, the appeal was dismissed with these observations.

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