Raychem RPG Pvt Ltd Vs Soura Natural Energy Solutions India Pvt Ltd (NCLAT Chennai)
The appeal arose from an order affirming the Registrar’s refusal to register a Section 9 application under the Insolvency and Bankruptcy Code, 2016 on the ground that the appellant had failed to rectify defects identified by the Registry under Rule 28(4) of the NCLT Rules, 2016. The Registrar had declined registration after the appellant did not cure defects relating to the verifying affidavit and the prescribed format of the petition despite notices issued by the Registry.
The NCLAT first condoned a delay of 14 days in filing the appeal after finding the reasons satisfactory. It also observed that the appeal challenged an order passed under Rule 63 against a Registrar’s order under Rule 28(4), and since no rights of the respondent had arisen at that procedural stage, the appeal could be decided on merits without affecting the respondent.
The appellant contended that although it had filed the Section 9 application, its earlier counsel did not receive or act upon communications relating to defect rectification and, owing to professional constraints, failed to pursue the matter effectively. After engaging new counsel, the appellant became aware of the dismissal under Rule 28(4) and subsequently filed the appeal.
