Case Note & Summary
The dispute arose from an appeal filed by Kuber Infrastructure Realities LLP against CNX Corporation Ltd. regarding the rejection of a Company Petition (CP) under Section 7 of the Code of Insolvency and Bankruptcy, 2016 by the NCLT Mumbai. The NCLT had dismissed the application on 11.04.2025, citing a failure to rectify defects related to the NESL certificate, which was deemed mandatory. The Appellant claimed that they had been in correspondence with the registry, arguing that the NESL certificate was not necessary and that they could demonstrate the existence of debt and default. Despite the Respondent's absence during the proceedings, the NCLAT heard the appeal ex parte. Upon reviewing the case, the NCLAT found merit in the Appellant's arguments, determining that the NCLT's insistence on the NESL certificate was unwarranted. Consequently, the NCLAT allowed the appeal, set aside the NCLT's order, and directed the reopening of the e-filing portal to enable the Appellant to refile the Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Headnote
A) Insolvency Law - Delay Condonation - Justification for Delay - Code of Insolvency and Bankruptcy, 2016, Section 7 - The NCLT dismissed the application due to failure to comply with objections regarding the NESL certificate, treated as mandatory. The Appellant contended that the NESL certificate was not mandatory and sought to establish their claim of debt and default. The Tribunal found merit in the appeal and allowed it, setting aside the NCLT's order and reopening the filing portal for the Appellant (Paras 1-4).
Issue of Consideration
Whether the NCLT's rejection of the application under Rule 63 due to delay and non-compliance with objections was justified.
Final Decision
The NCLAT allowed the appeal, set aside the NCLT's order dated 11.04.2025, and directed the reopening of the e-filing portal for the Appellant to refile the Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Law Points
- Insolvency application
- NCLT Rules
- delay condonation
- NESL certificate requirement
