SCB Steels Pvt. Ltd. Vs XX (NCLAT Delhi)
Summary: The NCLAT Delhi dismissed the appeal against the order dated 19.05.2025 by which the appellant’s application under Section 10 of the Insolvency and Bankruptcy Code was dismissed for non-prosecution and non-compliance with an earlier direction. The adjudicating authority had, by order dated 23.04.2025, directed the applicant to take steps to serve notice on the creditors by Dasti. The appellant did not take the required steps, and on 19.05.2025 its counsel submitted that the appellant was not in a position to serve the notice through Dasti. The adjudicating authority consequently concluded that the applicant was not interested in pursuing the matter and dismissed the application.
Before the NCLAT, the appellant contended that it had sought time to effect service but that such time had not been granted. The NCLAT declined to accept that submission, observing that the order dated 19.05.2025 clearly recorded the submission made by counsel that the appellant was not in a position to serve notice through Dasti. The Appellate Tribunal held that what happens in Court has to be treated as recorded by the Court and that a party cannot subsequently contend otherwise. The appellant also relied upon an earlier order dated 17.01.2025 recording that an affidavit of service had been filed pursuant to the order dated 06.12.2024.
