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M/S Affordavble Exports vs M/S Apparel Export Promotion Council

National Company Law Appellate Tribunal30 September 2024

Ratio decidendi

The rule this decision rests on

The Tribunal's reasoning rests on the following principles: An application filed for the early disposal of a pending matter, made in consonance with earlier directions of the Tribunal requesting expeditious disposal, is not an application that can properly be characterised as unprosecuted or as an abuse of the Tribunal's time, and so cannot be dismissed with costs on that footing. Where an order imposing costs is passed on a premise that is unsustainable in light of the Tribunal's earlier directions, the costs and the accompanying observations fall with it and are set aside.

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

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHIComp. App. (AT) No.317 of 2024

IN THE MATTER OF: Affordable Exports ....Appellant

Vs.

Apparel Export Promotions Council &Ors. ....Respondents

Present: For Appellant: Mr. VinitTrehan, Advocate For Respondent: Mr. Siddhartha, Advocate for AEPC Mr. Ankit Singal, Mr. Preetpal Singh and Mr. SoumyaSwarop, Advocates for R-2, 4-16, 18-20, 22, 24-29, 31 & 33 Mr Aditya Sikka and Mr. Digvijay Singh, Advocates for UOI

ORDER

(Hybrid Mode)

30.9.2024 - This Appeal is filed against an impugned Order dated 8th

August, 2024 passed in CA No.162 of 2024, filed by the Appellant herein to

pass necessary directions to hear and adjudicate the main petition and other

related applications on day-to-day basis to ensure early disposal of the matter.

Notice issued to the learned Counsel for the Respondentswho all are present.

The matter is taken up for hearing.

2. It is submitted earlier also Orders were passed by this Tribunal

requesting the learned NCLT to take up the matter expeditiously and dispose it

of. One such Order is of dated 11th March, 2019 wherein this Tribunal had

directed as under:-

2

"3. Having heard learned counsel for the Appellant while we are not inclined to issue notice to the Respondents, we direct the parties not to ask for unnecessary adjournment nor to file unnecessary Interlocutory Applications. The Tribunal is directed to take up all the Interlocutory Applications together including CA 721/PB ND/2018 filed by the Central Government (Appellant herein) an after hearing the parties pass final order in the Company Petition preferably within three months."

3. Further on 3rd July, 2019 the following Order was passed by this

Tribunal:-

"Learned Senior Counsel appearing on behalf of the Appellant submits that in view of the aforesaid order, the Tribunal may not entertain the Interlocutory Application, which are necessary to be entertained. However, that cannot be a ground to review the order in question as we have made it clear that "the parties not to ask for unnecessary adjournment nor to file unnecessary Interlocutory Applications". It does not mean that Interlocutory Application, which is necessary to be filed, has been prohibited by this Appellate Tribunal."

4. Further lastly, on 6th February, 2020 the following Order was passed by

this Tribunal:-

"Tribunal shall do well to pass appropriate orders after hearing the parties within three weeks keeping in view the observations in the orders dated 11.03.2019 and

Comp. App. (AT) No.317 of 2024 3

03.07.2019. We make it clear that the Impugned order gave directions regarding passing of final order."

5. It is the submission of the learned Counsel for the Appellant in

pursuance of the above Order, an application vizCA No.162 of 2024 was filed

for early disposal, which application was listed on 4th July, 2024 when a Notice

was issued for such application for 25th July, 2024. On 25th July, 2024, the

Bench could not assemble and the matter was adjourned to 8th August, 2024.

However, on 8th August, 2024, it is alleged the learned Proxy Counsel on behalf

of the Appellant sought a passover which was not granted and instead the

following impugned Order was passed:-

"2. Today, Mr. Yash Srivastava, Ld. Proxy Counsel appeared for Mr. VinitTrehan, Ld. Counsel for the petitioner. Mr. Aditya Sikka, Ld. Counsel for the MCA (respondent No.41) appeared in the Court, Mr. Krishnan Venogopal, Ld. Sr. Counsel appeared for Respondent No.1. Mr. Ankit Singal, Ld. Counsel for the Respondent No.2, 4-16, 18-20, 22, 24-29, 31 & 33 appeared. Mr. Anil Panwar, Ld. Counsel for the Respondent No. 36 & 39 appeared. The application has not been prosecuted with diligence. We have seen supine indifference on the part of this applicant in prosecuting this Application and is wasting valuable time of this Tribunal. The application stands dismissed with the cost of ₹500/-."

6. Admittedly, now the matter is listed for final arguments on 14 th

November, 2024 and the pleadings are all complete.

Comp. App. (AT) No.317 of 2024 4

7. Considering the fact the application - CA No.162 of 2024 was filed for

expeditious disposal as was requested by this Tribunal vide Orders dated

11thMarch, 2019, 3rd July, 2019 and 6th February, 2020, hence the said

application was primarily in consonance with earlier Orders of this Tribunal

and hence in the circumstances, ought not to have been dismissed with costs.

Thus the cost imposed vide impugned Order dated 8 th August, 2024 stands

waived alongwith observations made therein. As the matter is now listed for

final hearing on 14th November, 2024 and the pleadings having been complete,

we request the learned NCLT to take up the matter on the said date and to

dispose it of as expeditiously as possible, preferably within a month.

8. The appeal stands disposed of. Pending applications also stand disposed

of in terms of the above.

[Justice Yogesh Khanna] Member (Judicial)

[Mr. Indevar Pandey] Member (Technical) rs/md

Comp. App. (AT) No.317 of 2024

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