NCLT/NCLAT

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients procured goods from the supplier regularly and he was given a blank cheque at the inception of the translations. My client has not paid some of the payments due to some quality issues which relate to 3 years back transactions. Later, the supplier filled the cheque and remitted it into the bank which was originally given for security purposes got bounced. Now, the supplier initiated the NCLT process and got the order in favour from the NCLT without considering the Limitation period even after stressing by the counsel, however if we count from the cheque bounced date it would be within the time, but the cheque given only for security purposes. Now my query is that can we file a further appeal before NCLAT for remedy?

thanks in advance.

[DR.MARIAPPAN GOVINDARAJAN]

Yes. You can file appeal before NCLAT.

AI Summary

Right to appeal against corporate order available despite contested cheque-as-security and limitation dispute; pursue at appellate tribunal.
A supplier deposited a buyer's blank cheque held as security, the cheque was dishonoured, and the supplier secured an adjudicatory corporate order despite a limitation defence and dispute over the cheque's status as security; an appeal to the appropriate appellate tribunal may be filed to contest the order and raise limitation and factual-security arguments.