Miss Lucy
← All judgments

H.S. Oberoi Buildtech Pvt. Ltd vs Inderjit Singh & Another

National Company Law Appellate Tribunal18 May 2023

Ratio decidendi

The rule this decision rests on

An adjudicating authority, whether judicial or administrative, must hear a party affected by its decision before deciding the matter; where it reserves orders on applications without issuing notice to a party whose rights are affected (here, the successful resolution applicant), the resulting order offends the principle of audi alteram partem and is liable to be set aside, with the matter remanded for fresh hearing and a speaking order.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH,NEW DELHICompany Appeal (AT) (Ins.) No. 958 of 2022

IN THE MATTER OF: H S Oberoi Buildtech Pvt. Ltd. ...Appellant

Versus

Inderjit Singh & Anr. ...Respondents

Present: For Appellant: Mr. Pawan Kr. Mittal & Mr. Akhilesh L. Kamle, Advocates For Respondent: Mr. Inderjit Singh, party in person

With

Company Appeal (AT) (Ins.) No. 962 of 2022

IN THE MATTER OF: H S Oberoi Buildtech Pvt. Ltd. ...Appellant

Versus

Rakesh Duggal ...Respondent

Present: For Appellant: Mr. Pawan Kr. Mittal & Mr. Akhilesh L. Kamle, Advocates For Respondent: Mr. Bhanu Gupta, Mr. Akshat Singh, Advocates

With

Company Appeal (AT) (Ins.) No. 963 of 2022

IN THE MATTER OF: H S Oberoi Buildtech Pvt. Ltd. ...Appellant

Versus

Sudha Rani Reddy ...Respondent

Present: For Appellant: Mr. Pawan Kr. Mittal & Mr. Akhilesh L. Kamle, Advocates For Respondent: Mr. Pranjal Saran, Mr. Dacchita Shahi, Advocates 2

ORDER

Per: Justice Rakesh Kumar Jain: (Oral)

18.05.2023: This order shall dispose of three appeals bearing CA (AT)

(Ins) No. 958 of 2022 'H S Oberoi Buildtech Pvt. Ltd. Vs. Inderjit Singh & Anr.',

CA (AT) (Ins) No. 962 of 2022 'H S Oberoi Buildtech Pvt. Ltd. Vs. Rakesh

Duggal' & CA (AT) (Ins) No. 963 of 2022 'H S Oberoi Buildtech Pvt. Ltd. Vs.

Sudha Rani Reddy'.

2. Shorn of unnecessary details, the first appeal i.e. CA (AT) (Ins) No. 958

of 2022 has arisen from the order dated 24.05.2022 passed in I.A. No. 609 of

2022, second appeal i.e. CA (AT) (Ins) No. 962 of 2022 has arisen from the

same order dated 24.05.2022 passed in I.A. No. 1009 of 2022 and the third

appeal i.e. CA (AT) (Ins) No. 963 of 2022 has also arisen from the same order

dated 24.05.2022 passed in I.A. No. 991 of 2022.

3. Counsel for the Appellant has submitted that the aforesaid three

applications bearing I.A. No. 609 of 2022, 1009 of 2022 and 991 of 2022 filed

by the respective Applicants came up for hearing on 13.04.2022 but without

issuing notice to the Appellant who is the Successful Resolution Applicant,

the order was reserved and later the same was pronounced on 24.05.2022.

4. It is thus submitted that the order dated 24.05.2022 is against the

principle of natural justice i.e. Audi Alteram Parterm.

5. In appeal No. 958 of 2022, Inderjit Singh has put in appearance as party

in person whereas in appeal No. 962 and 963 of 2022 Bhanu Gupta and

Pranjal Saran has put in appearance on behalf of the Respondents.

6. We have heard Counsel for the parties and perused the record with their

able assistance.

3

7. First of all, we would like to refer to the order dated 13.04.2022 by

which the orders in the above three applications were reserved. The order

passed in all the three applications is reproduced as under:-

"I.A. No. 609 of 2022

Heard. Reserved for orders.

The Ld. Counsel is directed to file written notes containing two pages each within two days.

I.A. No. 991 of 2022 Heard. Reserved for orders.

The Ld. Counsel is directed to file written notes containing two pages each within two days clearly indicated therein that the Applicant will complied with terms and conditions of the Resolution plan.

I.A. No. 1009 of 2022 Heard. Reserved for orders.

The Ld. Counsel is directed to file written notes containing two pages each within two days."

8. Counsel for the Respondents could not deny the fact that notice was

not issued to the Appellant by the Tribunal while reserving the orders in the

aforesaid three applications, therefore, it is well established that the

Respondent has been condemned without giving any opportunity of hearing

by the Tribunal. In such scenario, it would be relevant to refer to a decision

of the Hon'ble Supreme Court in the case of 'State of Orissa vs Binapani Dei,

1967 AIR 1269', in which it has been held that not only the judicial order but

also the administrative order should be passed by following the principle of

natural justice.

9. In the present case, opportunity of hearing is conspicuous by its

absence, therefore, it is a fit case in which the impugned order deserves to be 4

set aside and the matter deserves to be remanded back to the Tribunal to once

again hear the parties and take a decision in accordance with law by passing

a speaking order.

10. Consequently, all the three appeals are allowed and the order dated

24.05.2022 is set aside. The aforesaid three applications are remanded back

to the Tribunal to decide it again by passing a speaking order after giving an

opportunity of hearing to the Respondent, in all the aforesaid three

applications, much less the present Appellant who is the SRA.

11. The Parties are directed to appear before the Tribunal on 02nd June,

2023.

12. The Tribunal is further directed to decide these applications as early as

possible but not beyond the end of the Month of July, 2023.

The registry is directed to send a copy of this order to the concerned

Tribunal.

[Justice Rakesh Kumar Jain] Member (Judicial)

[Mr. Naresh Salecha] Member (Technical)

Sheetal/RR

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free