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Sh. Pramod Chaudhary vs Punjab & Sind Bank

National Company Law Appellate Tribunal21 August 2025Ashok Bhushan

Ratio decidendi

The rule this decision rests on

Where an adjudicating authority declines to take a personal guarantor's reply on record solely because a condition of costs was not met, and the appellant shows that the costs were paid within the time fixed by the order and that the reply was emailed to the creditor before the listed date, the refusal cannot stand on that ground alone; the reply must be taken on record, and the creditor afforded a fresh opportunity to be served with it and to file a rejoinder.

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) (Ins) No. 795 of 2025 &I.A. No. 2972, 3055 of 2025

IN THE MATTER OF: Pramod Chaudhary ...Appellants Versus Punjab & Sind Bank ...Respondents

Present: For Appellant : Mr. Sumit Kalra, Ms. Anisha Arora and Ms. Yashika Malhotra, Advocates. For Respondents : Mr. Brijesh Tamber, Mr. Prateek Khushwah, Mr. Aryan Dala, Advocates.

ORDER

(Hybrid Mode)

21.08.2025: This appeal has been filed against the order dated

03.01.2025 by which order the Adjudicating Authority observed that no steps

have been taken by the personal guarantor with regard to payment of cost of

Rs. 20,000/- hence reply shall not be taken into consideration. Challenging

the order, Ld. Counsel for the appellant submits that the order was passed on

29.11.2024 for deposit of Rs. 20,000/- cost in the Prime Minister National

Relief Fund within a week and in pursuance of the said order the cost was

deposited on 06.12.2024. Ld. Counsel for the appellant has referred to

Annexure A-3 which is the receipt of the payment of cost. He further submits

that on 02.01.2025 appellant has emailed the scanned copy of the Reply to

the Bank since the matter was listed on 03.01.2025.

2. Ld. Counsel for the Bank submits that appellant has not informed the

payment of cost to the Court and not to the Bank. Counsel for the bank

submits that he has not been served with the copy of the Reply.

3. We have heard the counsel for the parties and perused the records.

4. The Adjudicating Authority by the impugned order has not taken the

Reply of personal guarantor only on the ground that the cost of Rs.20,000/-

has not been paid as directed on 29.011.202. The appellant has filed the

proof of the said payment which was within seven days from passing of the

order 29.11.2024. The appellant has also referred to the email dated

02.01.2025 where copy of the Reply was emailed to the Bank. In facts of the

present case, it was further noted in the order that Reply has already been

filed by the personal guarantor.

5. In facts of the present case, we set aside the order dated 03.01.2025

direct the Reply to be taken on record. Let a copy of the reply be again served

to the counsel for the bank within three days from today. It is stated that the

matter is fixed for 16.09.2025. The bank may file a Rejoinder to the reply

before the next date. Appeal is disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) harleen/NN

2 of 2 Company Appeal (AT) (Ins) No. 795 of 2025

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