Nagarjuna Fertilizers and Chemicals Limited VS IDBI Bank Limited
Company Appeal(AT)(Ins) – 433/CN/2022
Facts:
1.Application was filed by the respondent wherein AA directed completion of pleadings with the order dated 12.02.2021 and during pendency of the proceedings, in one of the matters under Section 9 of the Code filed against the Appellant, the same Bench with the order dated 27.08.2021 admitted the Application and subsequently a stay was granted on the order dated 27.08.2021.
2.Appellant is challenging the order dated 05.12.2022 passed by the ‘Adjudicating Authority’ NCLT Hyderabad wherein the AA ordered that the matter is part heard and listed on 20.12.2022.
Issue: Whether the pleading are completed and matter could be treated as part heard matter ?
Arguments:
Appellant:
1.Counsel submitted that the adjournment order dated 31.10.2022 and the order dated 01.08.2022 together with the memo filed by the Appellant on 04.12.2022, whereunder it is submitted that the Appellant has not filed their counter and hence pleading are not completed. It was submitted that the AA has not adhered to the ‘Principles of Natural Justice’ and that an opportunity ought to have been given to file ‘Counter’ on merits before treating the matter as ‘Part Heard’.
Respondent:
1.It was submitted that Appellant had filed their reply to the Section 7 Application after being given multiple opportunities; that the Section 7 Application was listed for the first time before the AA on 15.10.2020 and the counsel for the Corporate Debtor has been appearing since 29.10.2020 and despite repeated directions from the Adjudicating Authority, the Corporate Debtor had failed to file their ‘Reply’ within the specified time. In the hearing dated 17.12.2020, the Adjudicating Authority called upon the Corporate Debtor to file the ‘Reply’ by the next date i.e., 18.12.2020, but the Corporate Debtor failed to do so and the Adjudicating Authority had even imposed a cost of Rs. 50,000
2.The matter was listed on 17.08.2022, the Adjudicating Authority observed that despite giving several opportunities and sufficient time to file ‘Counter’, the same was not filed and once again a last chance was given to file their ‘Counter’ within a week. In August, 2022, a ‘Preliminary Counter’ was filed by the Corporate Debtor and therefore, it cannot be said that the Corporate Debtor was not given any opportunity to file their ‘Counter’ or that the pleadings are ‘incomplete’.
3.2nd Respondent i.e., the Deputy Registrar of NCLT, Hyderabad -II in reply submitted that pleadings in Company Petition No. CP(IB) No. 348/7/HDB/2020 were completed by 19.09.2022 as per the Bench order dated 19.09.2022
Decision: Pleadings are completed and matter can be treated as part heard matter.
Rationale:
1.NCLAT noted in the order dated 25.11.2022 that Learned Senior Counsel appearing for the Corporate Debtor/Appellant herein submitted that he would be filing ‘Written Submissions’ in all the connected matters and also make a brief submission which he undertook to complete by 05.12.2022. It is also recorded in the Order that there would not be any further adjournments given to the Corporate Debtor as the matter was adjourned on several occasions at the behest of the Corporate Debtor
2.Orders dated 19.09.2022 & 25.11.2022 clearly show that all the pleadings have been completed and the Appellant/ Corporate Debtor has delayed the matter seeking several adjournments.
Order:
