Case Note & Summary
The appeal arose from an order 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, Vaibhav Mercantile Ltd., 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 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 indeed appeared and was provided with the necessary documents but failed to file the reply within the granted time. However, considering that only one opportunity was given and the proceedings were still ongoing, the Tribunal decided to set aside the Impugned Order and grant the Appellant one last opportunity to file its reply within seven days. The Respondent was also allowed to file a rejoinder thereafter. The appeal was disposed of without any order as to costs.
Headnote
A) Company Law - Right to File Reply - Procedural Fairness - National Company Law Tribunal, 2016 - The Appellant's right to file a reply was closed by the Learned Adjudicating Authority due to non-filing within the stipulated time. 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 closure of the right to file a reply by the Learned Adjudicating Authority was justified.
Final Decision
The Tribunal set aside the Impugned Order and granted the Appellant one last opportunity to file its reply within seven days, with the Respondent allowed to file a rejoinder thereafter. The appeal was disposed of without any order as to costs.
Law Points
- Right to file reply
- procedural fairness
- opportunity to be heard
