# In the matter of Falcon Tyres Ltd. Vs Edelweiss Asset Reconstruction Co. Ltd. Writ Petition No. 16486-2017 (GM-Res)

> HC judgment dated 2017-06-05. Citation: TCN-2017-HC-00010. Falcon Tyres Ltd. filed a writ petition in the High Court of Karnataka challenging an order passed…

- **Court:** HC
- **Order date:** 5 Jun 2017
- **Citation:** TCN-2017-HC-00010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/falcon-tyres-ltd-vs-edelweiss-asset-reconstruction-co-ltd-writ-petition-no-16486-46cf389d

## Summary

### Background

Falcon Tyres Ltd. filed a writ petition in the High Court of Karnataka challenging an order passed by the National Company Law Tribunal (NCLT) at Bengaluru. The petitioner's grievance was that the NCLT admitted a petition without providing them an opportunity to be heard. The respondents, Edelweiss Asset Reconstruction Co. Ltd., filed counter-objections. The respondents conceded that the impugned order should be set aside and the NCLT should reconsider the matter after hearing both parties.

## Facts

Falcon Tyres Ltd. filed a writ petition challenging an order by the NCLT. The NCLT order admitted a petition without giving Falcon Tyres a hearing. Edelweiss Asset Reconstruction Co. Ltd., the respondent, filed counter-objections but conceded that the NCLT order should be set aside and reheard after both parties were given a chance to present their case. The High Court considered the petition, the counter-objections, and the concession made by the respondents. The key fact is the lack of opportunity given to Falcon Tyres to be heard before the NCLT's initial order, which formed the basis of their grievance.

## Issues and analysis

### Issue 1: Whether the order passed by the National Company Law Tribunal (NCLT) should be set aside due to the …

**Ratio:** The principle of natural justice requires that all parties be given a fair opportunity to

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**Reasoning:** The court reasoned that the petitioner's grievance was valid because the NCLT had

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**Interpretation:** The interpretation of the law is that procedural fairness is essential in

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**Application:** The ratio and reasoning were applied to the facts of the case by setting aside

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## Parties

- **Judges:** A.S. BO…
- **Appellants:** Falcon Tyre…
- **Respondents:** Edelweiss Asset…

## Timeline

- **2017-04-12 — NCLT Ord…**: The National Company Law Tribunal (NCLT) passed an order which was later challenged in…
- **2017-06-05 — High Court…**: The High Court of Karnataka set aside the NCLT order and directed the NCLT to rehear the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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