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Petitioner Challenges NCLT Order Admitted Under Section 7 IBC on Ground of Non-Pronouncement and Violation of NCLT Rules. High Court of Bombay Issues Rule and Hears Petition Alleging Order Non-Est for Lack of Pronouncement in Open Court.

High Court: Bombay High Court Bench: BOMBAY
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2026-11-03 23:24:59
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Case Note & Summary

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Headnote

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Issue of Consideration

Whether the NCLT order dated 22 October 2019 was validly passed when there was no pronouncement in open court as required by Rules 150 and 152(2) of the National Company Law Tribunal Rules, 2016, and whether such non-pronouncement vitiates the order and violates principles of natural justice.

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Final Decision

Not mentioned - judgment text incomplete

Law Points

  • order must be pronounced in open court
  • compliance with NCLT Rules 150 and 152(2) mandatory
  • non-pronouncement renders order non est
  • principles of natural justice
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Case Details

2019 LawText (BOM) (11) 41

Writ Petition (L) No. 3250 of 2019

2019-11-29

S. C. Dharmadhikari, R. I. Chagla

Janak Dwarkadas, Vikram Nankani, Ankita Singhania, Shailendra S. Kanetkar for petitioner; Rajshekhar V. Govilkar, Dhanesh R. Shah, Shaba Khan, Kinjal Jani for respondents 1 and 2; Ravi Kadam, Zal Andhyarujina, Dhananjay Kumar, Animesh Bisht, Anush Mathkar, Aarant Sarang, Sanjana M., Cyril Amarchand Mangaldas for respondents 3 and 4; B.A. Patel, Deputy Registrar of NCLT, present

Kamal K. Singh

Union of India, Registrar of National Company Law Tribunal, Mumbai, Value Partners Greater China High Yield Fund, Pinpoint Multi Strategy Fund, Shailendra Ajmera, Rolta India Ltd.

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging the order of the National Company Law Tribunal, Mumbai admitting an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 and initiating corporate insolvency resolution process against Rolta India Ltd.

Remedy Sought

Petitioner sought to quash the NCLT order dated 22 October 2019, a declaration that Section 231 of the IBC is unconstitutional (not pressed), and interim relief to stay the operation of the impugned order.

Filing Reason

Petitioner alleged that the NCLT order was passed without pronouncement in open court and in violation of Rules 150 and 152(2) of the NCLT Rules, 2016, and that he came to know of the order only when the Interim Resolution Professional took charge of the company's office, and the order was not communicated or uploaded until after the Judicial Member demitted office.

Previous Decisions

The NCLT, Mumbai Bench had reserved the insolvency petition for orders on 20 August 2019 after hearing arguments. On 22 October 2019, the NCLT passed the impugned order admitting the petition and initiating CIRP. The petitioner had no prior notice of the pronouncement, and the order was not listed for pronouncement on the cause list for that date.

Issues

Whether the impugned NCLT order is non est and void for non-compliance with Rules 150 and 152(2) of the National Company Law Tribunal Rules, 2016 which mandate pronouncement of orders in open court.

Submissions/Arguments

Petitioner argued that the NCLT order was never pronounced in open court; the cause list showing listing for pronouncement was created after the fact; the Judicial Member had demitted office shortly after; the order was not communicated, thereby depriving the petitioner of the opportunity to appeal within the prescribed period; the order is in violation of natural justice.

Judgment Excerpts

Heard learned counsel appearing for the parties. Rule. Respondents waive service. By consent, Rule is made returnable forthwith. This writ petition under Article 226 of the Constitution of India challenges the order passed by the National Company Law Tribunal, Mumbai...

Procedural History

The insolvency petition CP (IB) No. 4375/NCLT/MB/2018 was filed by respondent nos. 3 and 4 under Section 7 of the IBC before the NCLT, Mumbai. The matter was heard by a Bench of V.P. Singh (Judicial Member) and Rajesh Sharma (Technical Member) and reserved for orders on 20 August 2019. On 22 October 2019, the NCLT passed an order admitting the petition and initiating CIRP against the sixth respondent. The petitioner filed the present writ petition challenging the order.

Acts & Sections

  • Insolvency and Bankruptcy Code, 2016: Section 7, Section 231
  • National Company Law Tribunal Rules, 2016: Rule 150, Rule 152(2)
  • Constitution of India: Article 226
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Tags :
NCLT order non-pronouncement natural justice writ jurisdiction Article 226 IBC Section 7 NCLT Rules CIRP oral judgment Bombay High Court

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