M/S Murliwala Realcon Private Limited vs Mrg Infrabuild Llp
- CitationCompany Appeal (AT) (Insolvency) No.1097 of 2023
Ratio decidendi
The rule this decision rests on
The appellate tribunal may set aside an ex-parte proceeding and restore a party's right to file a reply where, despite prior opportunities to respond, the default is attributable to a misunderstanding between the party and its counsel, and the party tenders its reply promptly, serves an advance copy on the other side, and bears costs to compensate the opposite party for the delay.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Murliwala Realcon Pvt. Ltd. ...Appellant
Versus
MRG Infrabuild LLP Respondent
Present: For Appellant: Present but appearance not marked. For Respondent: Mr. Sidharth Chopra, Ms. Harshita Gulati, Advocates.
ORDER
14.09.2023: Heard learned counsel for the parties. This Appeal has been
filed against the order dated 04.07.2023 by which order the application filed
by the Appellant for setting aside the ex-parte order dated 20.09.2022 has
been rejected.
2. In the present case, opportunity was granted by the Adjudicating
Authority to the Appellant to file Reply on more than two occasions and on
20.09.2022 when nobody appeared on behalf of the Corporate Debtor, the
Adjudicating Authority directed to hear the matter ex-parte. Even application
filed for recall of order dated 20.09.2022 was rejected.
3. Learned counsel for the Appellant submits that there had been dispute
between the two construction companies namely Murliwala Realcon Pvt. Ltd.
(Appellant) and MRG Infrabuild LLP (Respondent) and there has been criminal
proceedings also between the parties and the High Court of Punjab and
Haryana at Chandigarh has already granted anticipatory bail to the Directors
Cont'd.../ -2-
of the Appellant. Learned counsel for the Appellant submits that there is no
doubt that the Appellant has defaulted by not filing reply as was allowed by
the Adjudicating Authority; but due to the reasons as mentioned in the
application that there was some misunderstanding that earlier counsel was
pursuing the petition, however, they were unable to update, the Corporate
Debtor failed to file reply. Learned counsel for the Appellant submits that the
reply is ready and he will file the same by tomorrow after serving an advance
copy to the other side.
4. It has been submitted by learned counsel for the Respondent that now
the matter is listed on 18.09.2023 before the Adjudicating Authority.
5. In the facts of the present case, we are of the view that ends of justice
be served in allowing one opportunity to the Appellant to file Reply by
tomorrow after serving a copy to the Respondent and further payment of cost
of Rs.25,000/- (Rupees Twenty Five Thousand Only) to the Respondent. The
cost shall be paid within one week. The Appeal is disposed of with aforesaid
direction.
6. Learned counsel for the Appellant submits that no adjournment shall
be taken by the Appellant before the Adjudicating Authority.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No.1097 of 2023
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