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The NCLAT allowed the appeal, set aside the impugned NCLT order dismissing the restoration application, and directed revival of the original petition. The Appellate Tribunal held that the withdrawal before the NCLT was predicated on a settlement deed containing an express revival clause permitting restoration upon default by the respondent/corporate debtor; the adjudicating authority erred by refusing restoration on a hyper-technical basis that the withdrawal order did not expressly reserve revival rights. The NCLAT found such dismissal manifestly illegal, restored the petition filed by the appellant, and remitted the matter for fresh adjudication by the NCLT strictly in accordance with law.
The NCLAT allowed the appeal, set aside the impugned NCLT order dismissing the restoration application, and directed revival of the original petition. The Appellate Tribunal held that the withdrawal before the NCLT was predicated on a settlement deed containing an express revival clause permitting restoration upon default by the respondent/corporate debtor; the adjudicating authority erred by refusing restoration on a hyper-technical basis that the withdrawal order did not expressly reserve revival rights. The NCLAT found such dismissal manifestly illegal, restored the petition filed by the appellant, and remitted the matter for fresh adjudication by the NCLT strictly in accordance with law.
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