Case Note & Summary
The case involved an appeal against an order rejecting a restoration application filed by the appellants, Vikash Kumar Shrivastav and another, in the context of the liquidation of Wave Global Educational Services Pvt. Ltd. The proceedings began when the company initiated a case under Section 9 of the Insolvency and Bankruptcy Code, 2016, which led to its admission on 18.11.2019 and subsequent liquidation on 11.08.2021. The appellants contended that they were not present during critical hearings due to inadvertence and technical lapses, resulting in an ex parte order against them. They filed a restoration application, which was also dismissed ex parte. The Tribunal's rejection of the restoration application was based on the assertion that the appellants failed to provide specific grounds for their absence. The appellants argued that the Tribunal did not adequately address the reasons provided in their application, which they claimed violated principles of natural justice. The court found that the Tribunal's failure to consider the grounds raised by the appellants rendered the order unjust. Consequently, the court set aside the impugned order, allowed the restoration application, and remitted the matter back to the Tribunal for a fresh hearing, imposing a cost of Rs.3,00,000 on the appellants for the delay caused in the proceedings. The appeal was disposed of accordingly, and any pending interim applications were closed.
Headnote
A) Company Law - Restoration Application - Ex Parte Proceedings - Judicial Review - Insolvency and Bankruptcy Code, 2016, Section 9 - The Tribunal failed to consider the specific grounds raised by the appellant in the restoration application, leading to an unjust ex parte order. The court held that the appellant must be given an opportunity to present their case before any financial liability is imposed (Paras 3-4).
Issue of Consideration
Whether the Tribunal erred in rejecting the restoration application without considering the grounds provided by the appellant.
Final Decision
The court set aside the order dated 08.10.2025, allowed the restoration application, and remitted the matter back to the Tribunal for a fresh hearing, imposing a cost of Rs.3,00,000 on the appellant.
Law Points
- Restoration application
- ex parte proceedings
- judicial propriety
- opportunity to be heard
- financial liability
