Rahul Kumar vs Vm Classes (P) Ltd. & Ors
- CitationCompany Appeal (AT) No. 292 of 2019
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on the proposition that a party's non-appearance and repeated adjournment requests, despite its counsel's signature on the attendance sheet, can justify dismissal of a petition for non-prosecution, and that a party seeking restoration must show plausible reasons for its default, with the availability of substituted service under the procedural rules being relevant to whether such reasons exist; the appellate court affirms this approach by declining to interfere with the order refusing restoration.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Rahul Kumar ...Appellant
Vs
VM Classes (P) Ltd. & Ors. ...Respondents
Present: For Appellant: Mr. Kaushal Kishore and Mr. Nityanand Mahto, Advocates. For Respondents: Mr. Rakesh K. Sharma, Mr. Nishant and Mr. Shailendra Bhardwaj, Advocates.
ORDER
13.12.2019: The Appellant has challenged the order passed by the
National Company Law Tribunal, New Delhi Bench, Court No. III dated 29th
May, 2019 whereby application for restoration of original Company Petition
filed under Section 241-242 of the Companies Act, 2013 by the Appellant has
been rejected with following observation:
"ORDER
Learned Counsel for the petitioner is present. In CA No.
363/C-III/ND/2019, which has been moved in relation to the
petition filed under Section 241/242 of the Companies Act,
2013 seeking for the restoration of the petition to its original
number as the same was dismissed for non-prosecution vide
order dated 25.4.2019 by this Tribunal. Paragraph-2 of the
application the following submission have been made:
Company Appeal (AT) No. 292 of 2019 -2-
"The Hon'ble Tribunal vide order dated
25.4.2019 further observed that there was no
appearance on behalf of the petitioner, even
though the junior colleague of the Counsel for the
petitioner had appeared and attendance sheet
was signed. The Tribunal however, proceeded to
dismiss the petition for non-prosecution. A copy
of the said order dated 25.4.2019 is being
appended herewith as Annexure-A/1. "
However, perusal of the order dated 25.4.2019
specifically shows that even though somebody has signed
the attendance sheet, however, in view of non-prosecution on
the part of petitioner when the matter was called by this
Tribunal and hence was constrained to dismiss this petition
for non-prosecution and as well as taking into consideration
the earlier orders passed by this Tribunal. Perusal of the
order sheet commencing from 23.8.2018 consistently shows
that either an adjournment has been sought for o the part of
petitioner on one reason or the other there has been no
Company Appeal (AT) No. 292 of 2019 -3-
appearance on the part of petitioner as even today, service to
the Respondents is not complete, to which, in this
Application, it is averred there is a change of address of the
respondents and service was not complete and in the
circumstances, affidavit of service has not been able to be
filed. We find no plausible reasons as in the absence of
address of R-2 & R-3, under NCLT Rules, 2017, the petitioner
could have availed other modes and of substituted service as
contemplated under Rule 52 of NCLT Rules. It is evident
from the averments made in the application despite the
lapses on the part of petitioner, the petitioner has chosen to
blame this Tribunal as evident from the above said
Paragraph extracted from the application. We find it totally
unwarranted and more so, in view of the conduct of the
petitioner, having signed the attendance sheet but not
appeared before this Tribunal when it was called which
clearly exposes the conduct which cannot be condoned.
Taking into consideration all the above aspects, we are
not in a position to allow this application and under the
circumstances, this petition stands dismissed. "
Company Appeal (AT) No. 292 of 2019 -4-
2. Mr. Rakesh K. Sharma, Advocate appearing on behalf of the contesting
Respondent wanted to contest on the ground that the Appellant is simply
dragging the matter and not cooperating with the Tribunal and wants to engage
the respondent in unnecessary litigation by preferring other cases. It is further
pointed out that the Appellant has tried to blame the Tribunal for his own
lapses and played an unwarranted role by signing the attendance sheet while
staying away from proceedings, thus fabricated the record, as noticed by the
Tribunal
3. We find no ground to interfere in the impugned order dated 29th May,
2019. The appeal is accordingly dismissed. No costs.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial)
[Justice Venugopal M.] Member (Judicial) am/gc
Company Appeal (AT) No. 292 of 2019
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