it is mandatory for the adjudicating authority to follow the Principles of rules of natural justice while passing an order under I&B Code, 2016

 

3

M/s MCL Global Steel Pvt. Ltd. & Anr. Appellants and CD

Vs.

M/s Essar Projects India Ltd. & Anr. Respondents and Op Cr

 

Appeal preferred by MCL Global against order of AA admitting CIRP

u/ 8 and 9

 

Grounds of appeal

 

The impugned ex parte order was passed by 'Adjudicating Authority without prior notice or intimation of hearing to the Appellants- Corporate Debtors against the principles of rules of natural justice.

 

The aforesaid correspondences clearly demonstrate the existence of dispute between the parties.

 

The word "includes" connote other dispute, if any, raised apart from the dispute mentioned in Section 8 of the 'I & B Code'.

 

Observations of NCLAT

 

Section 424 of the Companies Act, 2013 is applicable to the proceeding under the I&B Code, 2016, it is mandatory for the adjudicating authority to follow the Principles of rules of natural justice while passing an order under I&B Code, 2016.

 

AA passed order without Notice to the Appellant which is

violation of the principle of Natural Justice. If Notice would have been given then the Appellant wld have highlighted the fact of existence of Dispute before the AA. The Op Cr had concealed the fact that he had filed winding up Petition in which the Appellant had disputed the entire claim.

Adjudicating Authority failed to notice of the relevant facts that there was a dispute raised and replied by the Corporate Debtor, the impugned order passed by Adjudicating Authority cannot be upheld.