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Kamal Kumar vs Pawan Kumar Aggarwal & Ors

National Company Law Appellate Tribunal1 October 2026

Ratio decidendi

The rule this decision rests on

The reasoning here is thin but present: the Tribunal states that the appellant's reply is to be accepted without enforcing the prior-deposit-of-costs condition, that the costs direction is quashed upon filing the reply in compliance, and that failing filing the earlier effect of the order revives. The operative principle is that a condition precedent to acceptance of a reply (prior payment of costs) may be relaxed on the strength of the party's undertaking to file the reply promptly, with the cost order's effect conditioned on compliance. A tribunal may dispense with a requirement that costs be deposited before a reply is received, where the party gives an undertaking to file the reply forthwith; in that event the cost order, as to the imposition of costs, stands quashed upon compliance with the undertaking, and if the undertaking is not performed the original order revives.

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

Judgment

As delivered

-1-NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHI

Company Appeal (AT) No. 366 of 2026 & I.A. No. 7125 of 2026 IN THE MATTER OF: Kamal Kumar ...Appellant

Versus

Pawan Kumar Aggarwal & Ors. ...Respondents

Present: For Appellant : Mr. Mayank Sharma, Mr. Arindam Sarin, Mr. Dev Narain Tiwari, Advocates. For Respondents : Mr. Pulkit Atal, Adv.

ORDER

(Hybrid Mode)

01.10.2026: The appellant before us is an opposite party to the

proceedings before the Ld. Tribunal. By virtue of the impugned order, he

questions only part of the order that is put to challenge. The issue is with

regard to the imposition of cost upon him because of his dereliction for not

filing the reply despite the several opportunities being granted to him by the

Ld. NCLT. Conduct of appellant is deprecated.

2. Ld. Tribunal had further proceeded to direct that the receipt of the

reply would be subject to the prior payment of cost, and it is because of that

reason the appellant is before us, is submitting that, though he is intending

to file his reply today itself, but it's because of the rider attached in the order

that the acceptance of the reply would be subject to the prior payment of

cost, he is unable to file the reply. He says that he will file the reply during -2-

the course of the day itself, and if it is not filed, his opportunity for filing the

reply may be deemed to be closed.

3. Having heard the Ld. Counsel for the parties and exclusively taking

into consideration the undertaking given by the appellant. He is directed to

file the affidavit/reply during the course of the day, same would be accepted,

without enforcing the condition of payment cost. The same would be

accepted by the Registry without deposition of the cost. If it is not filed today,

the effect of the order will revive back to take it separately.

4. Subject to filing of reply in compliance of above directions, the part of

the order of imposition of cost would stand quashed.

5. The appeal is disposed of accordingly.

[Justice Sharad Kumar Sharma] Member (Judicial)

[Mr. Arun Baroka] Member (Technical)

[Mr. Indevar Pandey] Member (Technical)

SA/rr

Company Appeal (AT) No. 366 of 2026

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