Case Note & Summary
The appeal was filed by the Appellant, who was previously Respondent No. 2 before the National Company Law Tribunal, challenging the dismissal of an application for recall of an ex-parte order. The Appellant contended that she was not represented during the proceedings leading to the ex-parte order and was unaware of her counsel's non-appearance until she checked the NCLT portal. The Respondent No. 1 argued that the Appellant had been granted time to file a reply but failed to do so despite multiple opportunities. The court noted that the facts were largely admitted and recognized the importance of counsel's communication with their clients. It held that parties should not suffer due to their counsel's mistakes and decided to allow the Appellant one opportunity to file a reply, setting aside the impugned order. The court stipulated that failure to file the reply within the granted time would result in the revival of the previous orders. Additionally, the Appellant was directed to pay costs to Respondent No. 1 as compensation for the prejudice caused. The appeal was disposed of accordingly.
Headnote
A) Company Law - Ex-parte Proceedings - Right to be Heard - National Company Law Tribunal, 2016, Section Not mentioned - The court held that parties should not be penalized for the non-performance of their counsels and emphasized the importance of diligence in representation. The court set aside the impugned order and allowed the Appellant to file a reply, with a stipulation regarding the consequences of non-compliance (Paras 19-22).
Issue of Consideration
Whether the Appellant should be allowed to file a reply after the dismissal of the application for recall of an ex-parte order.
Final Decision
The court set aside the impugned order dated 05.05.2026, allowing the Appellant to file a reply within one week, with a warning that failure to do so would revive the previous orders. The Appellant was also directed to pay costs of Rs. 10,000 to Respondent No. 1. The appeal was disposed of in above terms.
Law Points
- Right to be heard
- Ex-parte proceedings
- Diligence of counsel
- Restoration of applications
