Case Note & Summary
The appeal arose from an order dated 23.04.2026 passed by the Learned Adjudicating Authority in C.P.(IB)/1416(MB)2025, where the right of the Respondent to file a reply was closed. The Appellant contended that it had appeared before the Adjudicating Authority for the first time on 17.03.2026 and was granted ten days to file a reply, which it failed to do due to unavoidable circumstances and lack of proper legal advice. The Appellant argued that it was contesting the matter diligently and requested additional time to file the reply. Conversely, the Respondent's counsel asserted that ample time had been provided and the Appellant's failure to file the reply was deliberate. The Tribunal noted that the Appellant had only been granted one opportunity to file the reply and, considering the proceedings were still ongoing, decided to set aside the Impugned Order. The Tribunal granted the Appellant a final opportunity to file its reply within seven days, with the Respondent allowed to file a rejoinder thereafter. The appeal was disposed of without costs, and any pending interim applications were closed.
Headnote
A) Insolvency Law - Right to File Reply - Closure of Right to File Reply - Insolvency and Bankruptcy Code, 2016 - The Appellant challenged the closure of its right to file a reply by the Learned Adjudicating Authority, arguing that it was due to unavoidable circumstances. The Tribunal held that since only one opportunity was granted and the proceedings were still pending, a final opportunity should be provided to the Appellant to file its reply (Paras 10-11).
Issue of Consideration
Whether the Appellant should be granted an opportunity to file a reply after the right was closed by the Learned Adjudicating Authority.
Final Decision
The Tribunal set aside the Impugned Order and granted the Appellant a final opportunity to file its reply within seven days, with the Respondent allowed to file a rejoinder thereafter. The appeal was disposed of without costs.
Law Points
- Right to file reply
- procedural fairness
- discretion of adjudicating authority
