Case Note & Summary
The appeal was filed by a Financial Creditor, Central Bank of India Ltd., challenging the dismissal of its Restoration Application No. 49 of 2026 by the National Company Law Tribunal, Mumbai Bench. The dismissal was based on non-prosecution after the original petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, was dismissed for want of prosecution on 25.03.2026. The restoration application was first listed on 13.05.2026, but no effective order was passed, and it was adjourned to 10.06.2026, where again no hearing occurred. On 11.06.2026, the Appellant was not represented, leading to the dismissal of the application. The Appellant argued that its counsel was present but not marked, and thus the dismissal was unjust. The Respondent's counsel indicated no objection to allowing the appeal. The Tribunal noted that the Appellant was represented on two occasions and found it reasonable to provide another opportunity for the Appellant to contest the matter. Consequently, the Tribunal set aside the impugned order, revived the restoration application, and remanded the matter for fresh consideration, directing the parties to appear before the Learned Adjudicating Authority on 31.08.2026. No costs were ordered.
Headnote
A) Company Law - Restoration Application - Dismissal for Non-Prosecution - Insolvency and Bankruptcy Code, 2016, Section 95 - The Appellant's restoration application was dismissed for non-prosecution despite representation on two occasions. The Tribunal found that the Appellant should be given an opportunity to contest the matter, leading to the decision to set aside the impugned order and revive the application for fresh consideration. Held that the Appellant deserves a chance to present its case (Paras 12-12).
Issue of Consideration
Whether the impugned order dismissing the restoration application for non-prosecution should be set aside.
Final Decision
The Tribunal set aside the impugned order, revived Restoration Application No. 49 of 2026, and remanded the matter for fresh consideration, directing parties to appear on 31.08.2026.
Law Points
- Restoration of application
- Non-prosecution
- Representation of parties
- Fresh consideration of application
