Apollo Green Energy Limited vs Royal Cap House
- CitationComp. App. (AT) (Ins) No. 1076 of 2026
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's reasoning rests on two principles. First, where a party has diligently pursued its defence before the Adjudicating Authority and the lapse causing the default is attributable to an inadvertent failure of its own staff to notice and cure registry defects, the Tribunal may set aside the closure of the right to file a reply and permit the defects to be cured within a short fixed period, the reply then being taken on record, provided the matter remains at a stage where it can be so accommodated and no prejudice to the other side is shown. Second, such relief may be granted on condition that the party deposits a specified sum as costs within a fixed time, and the benefit of the order is forfeited if that condition is not complied with.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Apollo Green Energy Ltd. ...Appellant(s)
Versus
Royal Cap House ...Respondent(s) Present: For Appellant : Mr. Rakesh Kumar, Mr. Aashish Kumar, Advocates. For Respondents : Appearnce not marked.
ORDER
(Hybrid Mode)
22.07.2026: Heard Ld. Counsel for the Appellant as well as Ld.
Counsel for the Respondent.
2. The instant appeal has been preferred by the appellant against the
order dated 29.05.2026 passed by the National Company Law Tribunal, New
Delhi, Court-V, in IB-611/ND/2025 whereby the opportunity of the
Appellant/Respondent to file the reply was closed.
3. Ld. Counsel for the Appellant/Respondent submits that he in
pursuance of the order of the Ld. Adjudicating Authority has filed the reply
online on 03.02.2026 however certain defects were raised by the Registry
which were removed and they re-filed the reply on 20.02.2026.
4. It is further submitted that thereafter certain defects were again raised
by the Registry and due to the fault of the clerk of the Appellant the same 2
defect could not noticed and could not be removed and on 29.05.2026 when
the matter was again placed before the Ld. Adjudicating Authority the
impugned order was passed and the right of the appellant to file the reply
was closed.
5. It is also submitted that the Appellant/Respondent was diligently
pursuing 'lis' before the Ld. Adjudicating Authority and it was due to the
circumstances beyond the control of the appellant he could not get the
defects removed and only one opportunity be provided to the
Appellant/Respondent to file the reply.
6. Ld. Counsel for the Respondent however vehemently opposes the
submissions made by Ld. Counsel for the Appellant and it is submitted that
the defects were deliberately not removed within time and the statement of
Ld. Counsel for the Appellant that the entire defects were removed and the
reply was re-filed on 20.02.2026 is not correct and the endeavour of the
appellant is to keep the proceedings pending.
7. It is further submitted that there is no illegality or to say any
irregularity in the impugned judgment and the same be sustained.
8. We have heard Ld. Counsel for the parties and perused the record.
9. It appears to be an admitted situation that a petition was filed by the
Respondent No. 1 under Section 9 of the IBC and was placed before the Ld.
Adjudicating Authority for the first time on 20.11.2025 whereon the notice
was issued to the Respondents and the matter was directed to be listed on
19.12.2025. However, on that day the matter could not be taken and the
matter was notified for 17.02.2026. On 17.02.2026 when the matter was 3
taken, statement was made by Ld. Counsel for the Appellant before the Ld.
Adjudicating Authority that they have already filed their reply. On
10.04.2026, the matter was not taken up due to paucity of time and it was
on 29.05.2026 the impugned order has been passed.
10. During the course of hearing, the print out of the e-filing portal of the
Ld. Adjudicating Authority has been placed before us with regard to the
instant matter and it appears from the same that the reply online was filed
by the appellant on 03.02.2026. This fact has also not been denied by Ld.
Counsel for the Respondent. The only laxity which appears to have been
committed by the appellant is of not removing the defects in reply, for which
an explanation has been given by the Appellant that the clerk of the Counsel
for the Appellant was not diligent and after re-filing of the reply on
20.02.2026 the fresh defects raised by the Registry could not be noticed by
the clerk of the Counsel for the Appellant and due to this the same could not
be timely removed and by passing the impugned order the opportunity to file
reply has been closed.
11. Having regard to all the facts and circumstances of this case and
having an eye on the fact that the matter before the Ld. Adjudicating
Authority is still at the stage of hearing and the written submissions have
also been filed by the parties, we permit the Appellant to remove the defects
raised by the Registry of the Adjudicating Authority, with regard to the reply
filed by him within next seven days, positively and if the defects as indicated
by the Registry of the Adjudicating Authority is removed within the period 4
stipulated by us the reply filed by the Appellant/Respondent may be taken
on record and the hard copy of the same, if required may also be taken.
12. In this scenario the Respondent (Applicant before Ld. Adjudicating
Authority) may also file rejoinder to the reply filed by the appellant within
next 7 days.
13. Thereafter the matter shall be taken to its logical end by the Ld.
Adjudicating Authority strictly in accordance with law.
14. Having regard to all the facts and circumstances of this case and
finding that there are certain lapses, which has been admittedly committed
by the appellant, we direct that the appellant shall deposit Rs. 25,000/- in
the Prime Ministers Relief Fund within 5 days from today.
15. If the cost as indicated by us is not deposited within the period
stipulated herein above, the Appellant will not get any benefit of this order.
16. The appeal is disposed of in above terms.
[Justice Mohammad Faiz Alam Khan] Member (Judicial)
[Naresh Salecha] Member (Technical) sr/mr
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