M/S Hsb Agro Industries Pvt. Ltd vs Mali Ram Bhilwal & Ors
- CitationComp. App. (AT) No. 263 of 2026
Ratio decidendi
The rule this decision rests on
A cost may be imposed on a party or its counsel only for cogent reasons and in appropriate cases; a cost imposed on a party may not be enhanced merely because counsel has referred to a pending waiver application that was not before the Tribunal, that is a matter for which the party is not at fault. An application for waiver of cost must be considered on its merits, and it cannot be disposed of merely because earlier orders were passed on the same subject.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: ADS Agro Industries Pvt. Ltd. & Ors. (Formerly M/S ...Appellant HSB Agro Industries Pvt. Ltd.) Versus
Mali Ram Bilwal & Ors. ...Respondents Present: For Appellant : Mr. Yash Anand, Mr. Sumit & Mr. Naveen Swami, Adv. For Respondents : None.
ORDER
(Hybrid Mode)
14.07.2026 I.A. No. 4789 of 2026
Keeping in view the averments made in the application for delay
caused in refiling of the appeal, the delay of 12 days occurred in filing the
appeal is hereby condoned.
Comp. App. (AT) No. 263 of 2026
1. Heard Learned Counsel for the Appellant and perused the record.
2. The instant appeal has been moved by the Appellant who was an
Applicant before the Learned Adjudicating Authority in Restoration
Application No. 63(ND) of 2023, being aggrieved by the Impugned Order
dated 12.05.2026 whereby the cost of Rs. 2,00,000/- was imposed on the
Applicant/ Appellant passed.
3. Learned Counsel for the Appellant submits that the aforesaid
Restoration App/63/ND/2023 came before the Learned Adjudicating
Authority on 17.03.2026 and having regard to the difficulty faced by the
arguing counsel a Proxy Counsel has appeared on behalf of the Applicant
Page 1 of 4 and by noticing that the Proxy Counsel is not able to assist the Tribunal
cost of Rs. 1,00,000/- was imposed by the Learned Tribunal to be paid in
the Prime Minister Relief Fund till the next date of listing and date
12.05.2026 was fixed in the Restoration Application.
4. It is further submitted that in between an application for waiver of
this cost was prepared and filed by the Appellant on 09.05.2026, however,
without any fault of the Applicant, the waiver application could not come
before the Tribunal on 12.05.2026 and during the course of proceedings
without any basis, simply on the fact that the Counsel for the Appellant has
referred to the waiver application in hi submissions, the cost of
Rs. 1,00,000/- which was imposed vide order dated 17.03.2026 was
enhanced to Rs. 2,00,000/-.
5. It is further submitted that on 19.05.2026, the waiver application
came before the Tribunal being I.A. No. 188/ND/2026 for disposal and the
same was dismissed on the ground that already the contents of this
application has been considered while passing orders dated 17.03.2026 and
12.05.2026.
6. It is vehemently submitted that there was no occasion for the Learned
Adjudicating Authority to impose a cost of Rs. 1,00,000/- either on
17.03.2026 or enhancement of cost to Rs. 2,00,000/- on 12.05.2026, as
on17.03.2026 the Proxy Counsel was not able to assist the Court as the
Counsel for the Appellant/ Applicant was in personal difficulty and on
second day i.e., 12.05.2026 the cost has been enhanced to Rs. 2,00,000/-
only on the ground that the Counsel for the Appellant has referred to a
Page 2 of 4 waiver application which was unfortunately not placed before the Tribunal
without any fault of the Applicant.
7. We at the outset place on record that the matter of imposing or
waiving off the cost is a matter between the Court and the party to whom
the cost has been imposed, therefore, we dispense the issuance of notice of
this appeal, so far as the Respondents are concerned.
8. Having gone through the record, the facts of the case appears to be
not in dispute. The order dated 17.03.2026 and 12.05.2026 as well as the
Impugned Order dated 19.05.2026 passed by the Tribunal are already on
record.
9. Perusal of the order dated 17.03.2026 would suggest that the arguing
Counsel for the Applicant was in personal difficulty on that day and he has
deputed a Proxy Counsel, who could not assist the Tribunal and for this
reason a cost of Rs. 1,00,000/- was imposed by the Tribunal.
10. We understand that the Proxy Counsels generally are not in a position
to assist the Courts as they do not hold the brief.
11. So far as the second occasion i.e., on 12.05.2026, is concerned the
Learned Counsel for the Applicant/ Appellant has only mentioned about the
cost waiver application filed by him on 09.05.2026, which was not available
on record and being annoyed by the same, the cost of Rs. 1,00,000/- was
enhanced to Rs. 2,00,000/-. We do not find any cogent reason on which the
Tribunal could enhance the cost of Rs. 1,00,000/- to Rs. 2,00,000/-. Simply
because the Appellant has referred to an application, which he had filed on
09.05.2026 and which was not before the Tribunal for no fault of him the
cost should not be enhanced.
Page 3 of 4
12. Significantly, the waiver application being I.A. No. 188/ND/2026
which was moved for waiving of cost appears to have also not been
considered on merits by the Tribunal as the same has been disposed of only
on account of the fact that on earlier occasions i.e., on 17.03.2026 and
12.05.2026 the orders has been passed by the tribunal.
13. Keeping in view all the facts and circumstances of the case, we are of
the considered view that there were no occasions before the tribunal to have
imposed the cost of Rs. 1,00,000/- on 17.03.2026 or enhancing the same to
Rs. 2,00,000/- on 12.05.2026. The cost must be imposed in appropriate
cases for cogent reasons and not otherwise.
13. Keeping in view all the facts and circumstances of the case and for
the reasons given herein before the appeal preferred by the Appellant is
allowed and the cost of Rs. 1,00,000/- imposed by the tribunal vide order
dated 17.03.2026 which has been enhanced to Rs. 2,00,000/- vide order
dated 12.05.2026 is hereby waived of.
14. There is No order as to costs.
15. Interim Application, if any, is also disposed of.
[Justice Mohammad Faiz Alam Khan] Member (Judicial)
[Mr. Naresh Salecha] Member (Technical)
Sim/mr
Page 4 of 4
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