Case Note & Summary
The case involved an appeal filed by Shiv Nandi Investments Pvt. Ltd. against an order of the National Company Law Tribunal (NCLT) dismissing their application for condonation of delay in filing a claim as a homebuyer. The appellant had initially filed an application (IA No.6027 of 2025) seeking to condone a delay of 468 days, which was dismissed for default on 12.12.2025. Subsequent applications for recall of the dismissal were also dismissed for default. The last application (RA - 82 of 2026) was dismissed on 01.09.2026, with the NCLT noting the appellant's lack of seriousness in pursuing the remedy. However, the appellant's counsel argued that they had not received any notice regarding the listings of their applications. The NCLAT, considering the appellant's status as a homebuyer and the implications of procedural fairness, allowed the appeal, set aside the NCLT's order, and directed that the matter be reconsidered. The court imposed a cost of Rs.20,000 to be paid to the Corporate Debtor for the purposes of the Corporate Insolvency Resolution Process (CIRP). The application was to be listed before the NCLT on a fixed date.
Headnote
A) Insolvency Law - Condonation of Delay - Dismissal of Application - Insolvency and Bankruptcy Code, 2016 - The appeal was allowed as the appellant, a homebuyer, claimed not to have received notice for the listing of his application, which led to its dismissal. The court emphasized the need for procedural fairness and directed that the matter be reconsidered by the NCLT. Held that the dismissal was not justified due to lack of notice (Paras 1-2).
Issue of Consideration
Whether the dismissal of the application for condonation of delay was justified given the appellant's claims of not receiving notice.
Final Decision
The NCLAT allowed the appeal, set aside the order dated 01.09.2026, and directed the NCLT to reconsider the application, imposing a cost of Rs.20,000 to be paid to the Corporate Debtor.
Law Points
- Insolvency proceedings
- delay condonation
- homebuyer rights
- procedural fairness
