Rakesh Nayar vs State Bank Of India

IN THE MATTER OF: Rakesh Nayar ...Appellant

Versus

State Bank of India ...Respondent

Present: For Appellant : Mr. Aditya Madaan, Mr. Rahul Kapoor and Mr. G.P. Madaan, Advocates

For Respondent : None

With Company Appeal (AT) (Insolvency) No. 271 of 2024

IN THE MATTER OF: Babita Nayar ...Appellant

Versus

State Bank of India ...Respondent

Present: For Appellant : Mr. Aditya Madaan, Mr. Rahul Kapoor and Mr. G.P. Madaan, Advocates

For Respondent : None

ORDER

(Hybrid Mode)

07.02.2024 Company Appeal (AT) (Insolvency) No. 270 and 271 of 2024

These two Company Appeals have been filed by the personal guarantor

against whom impugned order dated 25.01.2024 has been passed directing

for payment of cost of Rs. 2.5 lakhs within three days in Application under

Section 95 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to 'Code') filed against the Appellant by the State Bank of India. The

Adjudicating Authority on 10.01.2024 granted one week time to the personal

guarantor to file response as a final opportunity. The Appellant's case is that

they had filed response on 24.01.2024. Adjudicating Authority on the delay

of 6 days has imposed cost of Rs.2.5 lakhs on the personal guarantors.

It is submitted that the Appellant were also carrying physical copy of

the Reply on the date of hearing and were also ready for him. Considering the

facts of the present case, especially that there was delay of only 6 days in filing

the reply we are of the view that imposition of cost of Rs.2.5 lakhs is excessive.

We are of the view that ends of justice will be served in reducing the

cost to Rs.25,000/- each. Learned Counsel for the Appellant are allowed 10

days' time to deposit the cost.

In result, the impugned order dated on 25.01.2024 in so far as it

imposes cost of Rs.2.5 lakhs is substituted by amount of Rs.25,000/-. The

Adjudicating Authority shall take the reply of the Appellant on the record

before hearing the application. Appeals disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

[Mr. Arun Baroka] Member (Technical) pks/nn

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