Case Note & Summary
The appeal was filed by the appellant challenging the order dated 10.09.2026, which dismissed their application for recalling an earlier order that closed their right to file a reply. The appellant contended that they had requested necessary documents from the respondent to prepare their reply, but these were not provided, leading to the delay in filing. The Adjudicating Authority had directed the parties to complete pleadings by 04.08.2026, but the appellant failed to file their reply by that date, resulting in the closure of their right. The appellant subsequently filed an application for recall of the order, asserting that the delay was due to the respondent's failure to supply documents. The respondent opposed this, claiming that all necessary documents had been provided. The Tribunal noted that the appellant's application for recall was timely but ultimately rejected it, emphasizing the need for expediency in proceedings under the IBC. However, the Tribunal also recognized that no grave prejudice would occur to the respondent if the appellant was allowed to file their reply, provided they paid costs. The Tribunal directed the appellant to file their reply by 18.09.2026, with the respondent allowed to file a rejoinder by 21.09.2026, and mandated that the parties cooperate for an early resolution of the matter.
Headnote
A) Company Law - Right to File Reply - Closure of Right to File Reply - Insolvency and Bankruptcy Code, 2016, Section 7 - The appellant's right to file a reply was closed by the Adjudicating Authority due to non-filing by the stipulated date. The Tribunal held that no grave prejudice would be caused to the respondent if the appellant was given a last opportunity to file the reply, subject to costs (Paras 20-21).
Issue of Consideration
Whether the appellant should be allowed to file a reply after the right was closed by the Adjudicating Authority.
Final Decision
The Tribunal disposed of the appeal, directing the appellant to file their reply by 18.09.2026, with the respondent permitted to file a rejoinder by 21.09.2026, and imposed a cost of Rs. 50,000 to be deposited in the Prime Minister's Relief Fund.
Law Points
- Right to file reply
- Adjudicating Authority's discretion
- IBC provisions
- Procedural fairness
Case Details
2026 LawText (NCLAT) (09) 129
Comp. App. (AT) (Ins) No. 1757 of 2026
Justice Mohammad Faiz Alam Khan, Naresh Salecha
Mr. Joy Saha, Mr. Kartikey Bhatt, Mr. Parag Chatruvedi, Mr. Ayush Mathur, Mr. Abhijeet Sinha, Mr. S. Biswas, Mr. Siddhant Kant, Mr. Moulshree Shukla, Mr. Yugal Jain, Ms. Gayathri Balasubramanian, Ms. Vidushi, Ms. Heena Kochar, Mr. Harsh Gurbani, Ms. Arushi Handa
Catalyst Trusteeship Limited
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Nature of Litigation
Appeal against the dismissal of an application for recall of an order closing the right to file a reply.
Remedy Sought
The appellant sought to restore their right to file a reply.
Filing Reason
The appellant claimed the delay in filing was due to the respondent's failure to provide necessary documents.
Previous Decisions
The Adjudicating Authority had previously closed the appellant's right to file a reply on 04.08.2026.
Issues
Whether the appellant should be allowed to file a reply after the right was closed.
Whether the delay in filing was justified due to non-provision of documents by the respondent.
Submissions/Arguments
The appellant argued that they were unable to file a reply due to the respondent's failure to provide documents.
The respondent contended that all necessary documents were provided and opposed the appellant's request.
Ratio Decidendi
The Tribunal emphasized the importance of providing parties an opportunity to be heard and file pleadings, while balancing the need for expediency in proceedings under the IBC.
Judgment Excerpts
The instant appeal has been preferred by the appellant challenging the impugned order dated 10.09.2026 whereby the IA No. 159 of 2026 moved in CP IB 41 of 2026 moved by the appellant for recall of the order dated 04.08.2026 and to restore the right of the appellant to file reply is dismissed.
We are of the considered view that no grave prejudice would be caused to the Respondent if the appellant may be provided a last opportunity to file the reply, however subject to some costs.
Procedural History
The appellant filed an application for recall of the order dated 04.08.2026, which was dismissed by the Adjudicating Authority. The appellant then appealed to the National Company Law Appellate Tribunal.
Acts & Sections
- Insolvency and Bankruptcy Code, 2016: Section 7
