# In the matter of Aadi Shakthi Services Pvt. Ltd. vs. CA.S. Palaniappan & Ors. Comp App (AT) (CH) (Ins.) No. 53-2023

> NCLAT judgment dated 2023-04-05. Citation: TCN-2023-NCLAT-00642. The case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 5 Apr 2023
- **Citation:** TCN-2023-NCLAT-00642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aadi-shakthi-services-pvt-ltd-vs-cas-palaniappan-ors-comp-app-2e9d8159

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Chennai, in IA/596(CHE)/2022 in CP/1264/IB/2018. The NCLT had dismissed an application due to non-compliance with its order dated 20.06.2022, which required the applicant to file an amended application. The appellant contends that the NCLT did not provide an opportunity to explain why the 2nd respondent/Resolution Professional was a necessary party and failed to summon the Resolution Professional for not paying the Corporate Insolvency Resolution Process (CIRP) costs during the CIRP period and subsequent liquidation.

## Facts

Aadi Shakthi Services Pvt. Ltd. filed an appeal against an order dated 25.08.2022 passed by the National Company Law Tribunal (NCLT), Chennai, in IA/596(CHE)/2022 in CP/1264/IB/2018. The NCLT had dismissed an application because the applicant failed to comply with an earlier order dated 20.06.2022 to file an amended application. The appellant argued that the NCLT did not allow them to explain why the 2nd respondent (Resolution Professional) was a necessary party. They also claimed the NCLT should have summoned the Resolution Professional for not paying Corporate Insolvency Resolution Process (CIRP) costs. The 2nd Respondent/Resolution Professional argued that they should not be dragged into the proceedings because all documents were handed over to the Liquidator. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) erred in dismissing the application without providing an …

**Ratio:** The principle of natural justice, specifically 'Audi Alteram Partem', requires that a

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**Reasoning:** The NCLAT observed that the Impugned Order did not indicate whether the Learned Counsels

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**Interpretation:** The principle of 'Audi Alteram Partem' mandates that all parties involved in a

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**Application:** In this case, the NCLAT found that the NCLT's failure to provide the Appellant

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## Parties

- **Judges:** M. Venu…; Shreesha…
- **Appellants:** Aadi Shakthi…
- **Respondents:** CA.S. Palan…

## Timeline

- **2022-08-25 — Impugned…**: The National Company Law Tribunal (NCLT), Chennai, passed the impugned order in…
- **2022-06-20 — NCLT Ord…**: The NCLT directed the applicant to file an amended application in IA/596/CHE/2022 and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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