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M/S Murliwala Realcon Private Limited vs Mrg Infrabuild Llp

National Company Law Appellate Tribunal14 September 2023Ashok Bhushan

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

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Insolvency) No.1097 of 2023IN THE MATTER OF:

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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