Case Note & Summary
The appeal was filed by JUD Cements Limited challenging an order dated 10.09.2026 from the Adjudicating Authority regarding IA No. 160 of 2026 in CP IB No. 40 of 2026, which dismissed the appellant's recall application. The appellant contended that they were not provided necessary documents by the respondent, Catalyst Trusteeship Limited, which hindered their ability to file a timely reply to the interim application for moratorium. The appellant argued that they had acted in good faith and sought an opportunity to file their reply. The respondent opposed this, asserting that the appellant had misused the opportunity and failed to file the reply despite being given time. The court analyzed the procedural history, noting that the appellant had sought documents on two occasions but claimed they were not provided. The court found that the appellant's failure to file a reply was an error but not one that warranted dismissal of their appeal. The court decided to allow the appellant one opportunity to file their reply, subject to costs, and directed both parties to cooperate in the proceedings before the Adjudicating Authority. The appeal was disposed of with specific timelines for filing the reply and rejoinder, and a cost of Rs. 50,000 was imposed on the appellant to be deposited in the Prime Minister's Relief Fund.
Headnote
A) Insolvency and Bankruptcy - Right to File Reply - Procedural Fairness - Insolvency and Bankruptcy Code, 2016, Section 7 - The court held that the appellant should be given an opportunity to file a reply despite previous forfeiture, emphasizing the importance of allowing parties to contest on merits unless grave prejudice is shown. The court directed the appellant to file the reply by a specified date and imposed costs for the delay (Paras 22-23).
Issue of Consideration
Whether the appellant should be allowed to file a reply after the forfeiture of their right to do so.
Final Decision
The appeal was disposed of by allowing the appellant to file a reply by 18.09.2026, with the respondent allowed to file a rejoinder by 21.09.2026. The appellant was also directed to deposit Rs. 50,000 in the Prime Minister's Relief Fund within three working days.
Law Points
- Interim moratorium
- right to file reply
- procedural fairness
- IBC timelines
