JAI BALAJI INDUSTRIES LIMITED versus STATE BANK OF INDIA & ORS.

Failure to serve notice to the appellant as mandated by NCLAT Rules violated the principle of audi alteram partem; NCLAT order accordingly set aside and matter remanded for fresh consideration after affording opportunity of hearing.

Parties: Appellant: Jai Balaji Industries Limited; Respondent No.1: State Bank of India; Respondents: Other Respondents
Jurisdiction: India
Judgment Date: 08 March 2019
Procedural Posture: Civil Appeal / Appeal Against NCLAT Order
Outcome: Appeal allowed. Impugned NCLAT order set aside. Matter remanded to NCLAT.
Legal Topics: Service of Notice, Natural Justice, Appellate Procedure, Rule 48 and Rule 52 of NCLAT Rules, Section 7 Insolvency & Bankruptcy Code

Insolvency Law Banking Law Company Law Service of Notice Natural Justice Appellate Procedure Rule 48 and Rule 52 of NCLAT Rules Section 7 Insolvency & Bankruptcy Code

Case Brief

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Parties

Jai Balaji Industries Limited

Appellant

State Bank of India

Respondent No.1

Other Respondents

Respondents

Procedural Posture

Civil Appeal / Appeal Against NCLAT Order

Legal Issues

1 Whether appellant was served with notice before NCLAT as mandated by NCLAT Rules
2 Whether appellant's right to be heard (audi alteram partem) was violated
3 Whether NCLAT complied with procedural requirements of issuing notice

Ratio Decidendi

Court Disposition

Appeal allowed. Impugned NCLAT order set aside. Matter remanded to NCLAT.

Orders

NCLAT to dispose of the matter expeditiously after affording opportunity of hearing to parties.
Appellant and respondents directed to approach NCLAT on March 13, 2019 for early listing.