Judgment pronounced without reasoning is not judgement in eye of law

Gandhar Oil Refinery (India) Ltd. Vs City Oil Pvt. Ltd. (NCLAT Delhi)

NCLAT held that when judgment is pronounced without reasoning, it is not a judgment in the eye of law for the reason that the requirement of reasoning either by Original Court or Appellate Authority is to convey the mind of the judge while deciding such an issue before the Tribunal.

Facts-

Due to failure of balance amount by the Respondent, the Appellant issued a notice demanding payment of outstanding amount together with interest @ 24% per annum.

The Respondent had neither paid the outstanding amount nor disputed the debt within 10 days from the date or receipt of demand notice under Section 8 of IBC, 2016. Therefore, the Appellant having no other alternative, filed application under Section 9 of IBC, 2016 to initiate insolvency process against Respondent. Corporate Debtor, claiming to be operational creditor.

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