Case Note & Summary
The appeal was filed against an order from the National Company Law Tribunal (NCLT) that dismissed a restoration application for a company petition due to non-prosecution. The appellant, ADA Restaurants and Foods Pvt. Ltd., contended that the restoration application was filed within the 30-day period as per the NCLT Rules, 2016, but was not registered by the Registrar due to objections. The appellant subsequently filed an appeal against the Registrar's decision, which was set aside by the NCLT, allowing the re-filing of the restoration application upon payment of costs. The appellant complied with the cost requirement, and the restoration application was subsequently listed for hearing. The NCLAT reviewed the documents and determined that the restoration application was indeed filed within the limitation period and that the reasons for the dismissal of the application were incorrect. Consequently, the NCLAT set aside the impugned order and restored the original company petition to its original number, thereby disposing of the appeal favorably for the appellant.
Headnote
A) Company Law - Restoration of Applications - Delay in Filing - Condonation of Delay - Insolvency and Bankruptcy Code, 2016, Section 10 - The appellant sought restoration of a company petition dismissed for non-prosecution, claiming the restoration application was filed within the limitation period. The Tribunal found the delay was justified and restored the petition, setting aside the earlier dismissal order. Held that the application was within limitation and the reasons for dismissal were incorrect (Paras 1-6).
Issue of Consideration
Whether the delay in filing the restoration application was justified and if the application should be restored.
Final Decision
The NCLAT set aside the order dated 23/07/2026 and restored the C.P. (IB) No. 962/ND/2020 to its original number, thereby allowing the appeal.
Law Points
- Restoration of applications
- Limitation period
- Condonation of delay
- NCLT Rules
- 2016
