Lok Sewak Leasing & Investment Private Limited Vs GBL Chemical Limited (NCLAT Delhi)
NCLAT Delhi held that delay in filing restoration appeal can be condoned in terms of rule 48 of the NCLT Rules, 2016 since sufficient cause made out. Accordingly, matter restored back to the Adjudicating Authority.
Facts- The present Company Appeal has been filed by the Appellant i.e. M/s Lok Sewak Leasing & Investment Pvt. Ltd who is the Financial Creditor, under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging the Impugned Order dated 22.01.2025 passed by the National Company Law Tribunal, Mumbai Bench, Court – IV (“Adjudicating Authority”). M/s GBL Chemical Ltd., who is the Corporate Debtor, is the Respondent herein.
The Appellant submitted that the Impugned Order violates principles of natural justice by failing to record or adequately address the submissions made during the hearing on 22.01.2025. The Appellant contended that the Adjudicating Authority’s dismissal of the Restoration Application without due consideration of the Appellant’s bonafide efforts and the inadvertent default of its counsel renders the order arbitrary and legally unsustainable.
The Appellant submitted that the Section 7 Application is meritorious, as it establishes a clear debt and default by the Respondent, substantiated by the Facility Agreement, demand promissory note, and Demand-cum-Acceleration Notice. The Appellant contended that the dismissal of the Section 7 Application for non-prosecution and the subsequent refusal to restore it have unjustly deprived the Appellant of its right to pursue legitimate claims under the Code.
