GP Capt Atul Jain vs NCLAT and Ors.
LPA 293/2021 & CM APPL. 27762/2021
Facts:
1.A loan of Rs.40 lac was advanced by the Appellant to Tripathi Hospital Private Limited (THPL)on tge request of its directors.
2.Directors and the CMD cheated the Appellant and did not return the loan amount, as assured, in June 2017. Appellant filed an application under Section 7 of IBC before NCLT, Allahabad Bench on 14.10.2019, which was dismissed vide order dated 25.06.2020.
3.Appeal was preferred whereby NCLAT directed the parties to submit written submission and appellant submitted the written submission and vide order dated 17.12.2020 directed the Appellant to submit copy to respondent. Appellant challenged the order before a single judge bench which was dismissed.
Issue:
1.Whether NCLAT can direct the parties to submit written submissions and supply it to other party?
Argument:
Appellant (Appeared in Person)
1.Appellant submitted that he has filed a writ petition before the learned Single Judge of this Court impugning orders dated 12.10.2020 and 17.12.2020 passed by learned NCLAT, whereby directions were issued to the parties before the NCLAT to file brief written submissions and copies of the judgments on which they wanted to rely on at the time of arguments as also a direction to provide copies of the brief written submissions filed by the Appellant to the Respondent
2.Appellant sybmitted that directions are beyond the jurisdiction of the NCLAT which does not enjoy the power to regulate its own procedure unlike the NCLT, which has such a power under Rule 51 of the National Company Law Tribunal Rules,It is also contended that neither in the Companies Act, 2013 nor under the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as (‘IBC’) there is any procedure under which a direction can be issued to file written submissions and judgments.
Decision: NCLAT can direct parties to file written submissions and provide it to other party
Rationale:
1.Appellant may be right in his submission that there is no written procedure which provides for filing of written submissions or exchanging copies thereof between the parties, but that, in our view, cannot lead to a conclusion that the impugned orders of the NCLAT are illegal.
2.Courts or Tribunals usually direct filing of the brief written submissions in order to facilitate the adjudication and crystallize the issues involved in the matter before them.
3.This Court fails to understand prejudice caused to the Appellant by the impugned directions, more particularly, when the Respondent had also been directed to file the written submissions / judgments and the copy has been supplied to the Appellant,which is evident from reading of the orders passed by the NCLAT
Order Copy:
