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NCLAT APPEAL NOTICE MANDATORY TO SEND EVEN IF ADVANCE COPY OF APPEAL PAPER BOOK SUPPLIED, HOLDS SUPREME COURT

Team SoOLEGAL 12 Mar 2019 10:22am

NCLAT APPEAL NOTICE MANDATORY TO SEND EVEN IF ADVANCE COPY OF APPEAL PAPER BOOK SUPPLIED, HOLDS SUPREME COURT

SBI approached NCLAT (National Company Law Appellate Tribunal). The NCLAT had set aside the order of National Company Law Tribunal, Calcutta. The application filed by the bank is now to be admitted against Jai Balaji Industries Limited under Section 7, Insolvency and Bankruptcy Code. The company preferred appeal before the Apex court.

Senior Advocate Kapil Sibbal was appointed by the company as their advocate. He contended before the Supreme Court that the company was not served a legal notice of appeal before NCLAT. Also it had not been heard. This amounts to violation of the principles of natural justice.

Advocate Mukul Rohatgi had appeared for the bank. He contended that the advance copy of the appeal paperbook filed by the Bank and was duly delivered by post at the registered office of the Company, wherein it showed intent to challenge the order of the NCLT.
The Supreme Court bench, comprising of Justices NV Ramana and Mohan Shantanagoudar, set aside the order of NCLAT and directed the Appellate Tribunal to dispose of the matter as expeditiously as possible after giving an opportunity of hearing to the parties.
Such direction was given because the Apex court observed that, since no notice was served upon the company before the NCLAT as stipulated under the rules, and its right to be heard, audi alteram partem, has been violated.

"Rule 48 of the NCLAT Rules clearly stipulates service of notice on the other side, pursuant to issuance of notice by the NCLAT in the appeal, regardless of supply of advance copy of appeal paperbook prior to the issuance of notice by NCLAT"



Tagged: NCLT   SupremeCourt   NCLT   Rule48  
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