Case Note & Summary
The case involved an appeal by Jugal Kishore, a personal guarantor to JSD Steels Private Limited, against an order of the Adjudicating Authority that imposed a cost of Rs. 2 Lakhs while restoring a petition under Section 94 of the Insolvency and Bankruptcy Code, 2016. The appeal was heard on 10th July 2026, where the Appellant's counsel highlighted procedural issues, including the dismissal of the petition for want of prosecution without notice to creditors. The Tribunal noted that the Adjudicating Authority had already restored the petition but found the imposed cost excessive. After considering the facts, the Tribunal decided to reduce the cost to Rs. 25,000, which the Appellant was directed to deposit by the next hearing date. The appeal was thus disposed of with the modified cost order.
Headnote
A) Insolvency Law - Restoration of Petition - Justification of Cost Imposition - Insolvency and Bankruptcy Code, 2016, Section 94 - The Adjudicating Authority had restored the petition filed by the Appellant but imposed a cost of Rs. 2 Lakhs, which was deemed excessive. The Tribunal modified the cost to Rs. 25,000 considering the circumstances of the case and the lack of notice to creditors. Held that the modified cost was appropriate (Paras 5-6).
Issue of Consideration
Whether the cost imposed by the Adjudicating Authority was justified and whether the petition under Section 94 should be restored.
Final Decision
The Tribunal modified the cost imposed by the Adjudicating Authority from Rs. 2 Lakhs to Rs. 25,000, which the Appellant was directed to deposit by the next hearing date.
Law Points
- Restoration of petition
- Cost imposition
- Section 94 of the Code
- Notice to creditors
