Vipul Limited vs Shinjani Aggarwal & Ors

Vipul Ltd. ....Appellant

Vs.

Payal Jain & Ors. ...Respondents

For Appellant: Mr. Sumesh Dhawan, Ms. Vatsala Kak, Mr. Shaurya Shyam, Advocates.

For Respondents: Mr. RK Gupta, Advocate. Comp. App. (AT) (Ins.) No. 556 of 2022

In the matter of:

Vipul Ltd. ....Appellant

Vs.

Shinjani Aggarwal & Ors. ...Respondents

For Appellant: Mr. Sumesh Dhawan, Ms. Vatsala Kak, Mr. Shaurya Shyam, Advocates.

For Respondents: Mr. Piyush Singh, Ms. Aditi Sinha, Advocates.

ORDER

(Through Virtual Mode)

19.05.2022: These two Appeals have been filed by the Suspended

Director of the Corporate Debtor. In Company Appeal (AT) (Ins.) No. 555 of

2022 and Company Appeal (AT) (Ins.) No. 556 of 2022, the Application under

Section 7 was filed by the Financial Creditors in which Application notices 2

were issued and Corporate Debtor appeared and asked for time to file Reply.

Matter was taken on 05.05.2022 and following order was passed:-

"Ld. Counsel appearing for the Respondent submits that she has filed the reply yesterday. Whereas the Ld. Counsel appearing for the Petitioner submits that the copy of the reply has not been served upon him. The reply is not available on DMS.

We further notice that vide order dated 28th March, 2022, the respondent was directed to file the reply within 3 weeks but that order has not been complied by the respondent. so, considering this, we hereby close the right of reply of the respondent.

List the matter on 6th July, 2022."

2. Appellant has come up with the case that he has e-filed the Reply on

04.05.2022. Copy of the Reply which is claim to be filed before the

Adjudicating Authority is also annexed along with the Appeal at Page 95. The

receipt which has been issued to Appellant with regard to uploading of the

documents is to the following effect:-

"You have uploaded below Document Successfully

IA Filing/ Filing No : 0710102002492022

Filing Date : 04-05-2022

S. Filing Number Miscellaneous No. Party Name File Name No.

1 0710102002492022 0710102002492022/3 VIPUL LIMITED Reply_CP (IB) 156 of 2022.pdf

Comp. App. (AT) (Ins.) No. 555 & 556 of 2022 3

2 0710102002492022 0710102002492022/3 VIPUL LIMITED dhawanco.in Mail- Advance Service-

Additional Affidavit in CP (IB) No. 156 (PB) of 2022-

Payal Jain & Ors. V. Vipul Limited.pdf

3. The Adjudicating Authority has observed in the order that the Reply is

not available on DMS (Data Management System). Further, it was observed

that on 28.03.2022, Respondent was directed to file the Reply within three

weeks which order has not been complied with.

4. Learned Counsel for the Respondents submits that in fact, two weeks'

time was allowed which expired long back. The Adjudicating Authority by

order has closed the right of reply of the Respondent. Learned Counsel for the

Respondents submits that the Respondent/Appellant failed to file Reply within

time allowed and earlier also he was granted time and no indulgence ought to

have been given to the Respondent.

5. We have considered the submissions of the Counsel for the parties and

perused the record.

6. From the material on the record, it does appear that the Reply which

was filed by the Appellant was uploaded and e-filing receipt dated 04.05.2022

has been issued to the Appellant. The fact that the said Reply is not available

on DMS may be a factor to be considered but in event, the Reply was filed on

04.05.2022, there was no occasion to close the right of reply of the

Respondent. The Adjudicating Authority right to have not taken such technical

Comp. App. (AT) (Ins.) No. 555 & 556 of 2022 4

view in the matter and close the right of reply of the Respondent especially

when the Reply was already filed. The Adjudicating Authority could at best

have directed the Appellant to pay some costs which could have substantially

protect the interest of both the parties. Copy of the Reply has also been

received by the Counsel for the Respondent as has been submitted before us,

hence, we are of the view that let the Respondents i.e. Financial Creditors may

file their Rejoinder to the Reply within three weeks from today because the

matter is being now posted on 06.07.2022. We are of the view that on

06.07.2022 both the Reply of the Corporate Debtor and the Rejoinder of the

Financial Creditor be considered and it shall be open for the Adjudicating

Authority to proceed in accordance with the law.

7. With the aforesaid observations, we set aside the order dated

05.05.2022 and dispose of the Appeal accordingly. We further are of the view

that the Appellants in both these Appeals should pay the cost of Rs.10,000/-

to the Financial Creditors each.

[Justice Ashok Bhushan] Chairperson

[Shreesha Merla] Member (Technical)

[Naresh Salecha] Member (Technical) Anjali/nn

Comp. App. (AT) (Ins.) No. 555 & 556 of 2022