# In the matter of Vijit Kumar Agarwal Vs. State Bank of India & Anr, W. P. (C) No. 9923/2022

> HC judgment dated 2022-05-04. Citation: TCN-2022-HC-00049. The case involves a writ petition filed in the High Court of Orissa at Cuttack challenging an order…

- **Court:** HC
- **Order date:** 4 May 2022
- **Citation:** TCN-2022-HC-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/vijit-kumar-agarwal-vs-state-bank-of-india-anr-w-p-6d2df284

## Summary

### Background

The case involves a writ petition filed in the High Court of Orissa at Cuttack challenging an order dated March 4, 2022, passed by the National Company Law Tribunal (NCLT), Cuttack Bench. The petitioner's counsel argues that the NCLT order, made under Section 95 of the Insolvency and Bankruptcy Code, 2016, initiating insolvency proceedings against the petitioner's client, was done without notice and violates principles of natural justice. The order was made ex-parte.

## Facts

Vijit Kumar Agrawal filed a writ petition challenging an order by the National Company Law Tribunal (NCLT), Cuttack Bench, dated March 4, 2022. The order was made under Section 95 of the Insolvency and Bankruptcy Code, 2016, initiating insolvency proceedings against Agrawal's client based on an application by the State Bank of India. The order was made without notice to the client. The NCLT appointed a Resolution Professional (RP), Shikhar Chand Jain, under Section 97 of the IBC, based on the bank's proposal. The petitioner argues that this appointment violates principles of natural justice and that Section 97 does not empower the adjudicating authority to nominate an RP solely based on the creditor's proposal. The High Court stayed the NCLT's order pending further

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## Issues and analysis

### Issue 1: Whether the NCLT's order initiating insolvency proceedings without notice to the petitioner's …

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

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**Reasoning:** The court notes the petitioner's submission that the insolvency proceedings were

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**Interpretation:** The interpretation of natural justice requires procedural fairness, including

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**Application:** The court considers whether the ex-parte nature of the NCLT's order violated

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## Parties

- **Judges:** Arindam…
- **Appellants:** Vijit Kumar…
- **Respondents:** State Bank of…

## Timeline

- **2022-03-04 — NCLT Ord…**: NCLT, Cuttack Bench, passed an order initiating insolvency proceedings against the…
- **2022-05-04 — High Court…**: The High Court of Orissa at Cuttack stayed the NCLT's order and issued notice to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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