Costs reduced in insolvency dispute, while interference with the impugned order was declined and tribunal observations were confined to the application.

Interference with the impugned order was declined, but the Supreme Court reduced the costs imposed from Rs.10 lakhs to Rs.5 lakhs. The reduced costs were directed to be paid to the Supreme Court Middle Income Group Legal Aid Committee within two weeks. The Court also noted that the observations of the NCLT and NCLAT were confined to adjudication of the application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

---

---

Issues: Whether interference with the impugned order was warranted and whether the costs imposed deserved reduction.

Analysis: The appeal was not accepted on the challenge to the impugned order. However, the direction as to costs was reconsidered and reduced from Rs.10 lakhs to Rs.5 lakhs. The costs were directed to be paid to the Supreme Court Middle Income Group Legal Aid Committee within two weeks. The observations made by the National Company Law Tribunal and the National Company Law Appellate Tribunal were confined to adjudication of the application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

Conclusion: Interference with the impugned order was declined, but the costs were reduced to Rs.5 lakhs and the appeal was disposed of in those terms.

---