# In the matter of AKJ Fincap Limited Vs. Bank of India CA (AT) (Ins) No. 178 of 2021

> NCLAT judgment dated 2021-04-16. Citation: TCN-2021-NCLAT-00283. The case involves two appeals, Company Appeal (AT) (Insolvency) No. 178 of 2021 and Company…

- **Court:** NCLAT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLAT-00283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/akj-fincap-limited-vs-bank-of-india-ca-432c1bea

## Summary

### Background

The case involves two appeals, Company Appeal (AT) (Insolvency) No. 178 of 2021 and Company Appeal (AT) (Insolvency) No. 179 of 2021, filed by Ms. AKJ Fincap Limited against an order passed by the National Company Law Tribunal (NCLT), Guwahati Bench. The NCLT had dismissed an Interlocutory Application (IA No. 45 of 2020) filed by AKJ Fincap seeking to set aside an ex-parte order dated 18.03.2020. The ex-parte order was passed in a Section 7 application filed by Bank of India under the Insolvency and Bankruptcy Code (IBC). The appellant argued that they were not properly served notice of the Section 7 application and that the NCLT should have set aside the ex-parte order. The respondent, Bank of India, contended that service was properly effected and that the appellant

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## Facts

On 09.12.2020, the Adjudicating Authority (National Company Law Tribunal, Guwahati Bench, Guwahati) passed an order in I.A. No. 45 of 2020 in CP (IB) No. 04/GB/2020 filed by M/s. AKJ Fincap Limited, seeking to set aside the ex-parte Order dated 18.03.2020. Bank of India filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority passed an ex-parte Order on 18.03.2020, noting that notice was served on the ‘Corporate Debtor', but there was no appearance. The Section 7 Application came up for hearing on 10.02.2020, and notice was issued to the Appellant returnable on 25.02.2020. On 25.02.2020, the Adjudicating Authority observed that the notice sent to the Appellant had returned with an endorsement ‘insufficient address'

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in dismissing the I.A. seeking to set aside the …

**Ratio:** The ratio is based on the principles of natural justice and the provisions of Rule 49(2)

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**Reasoning:** The court reasoned that the ex-parte order was passed during the COVID-19 pandemic and

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**Interpretation:** The interpretation is that the Adjudicating Authority should have considered

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** AKJ FINCAP…
- **Respondents:** Bank of…

## Timeline

- **2020-02-10 — Section 7 Application…**: Section 7 Application came up for hearing for the first time and Notice was issued to the…
- **2020-02-25 — Notice Re…**: The Adjudicating Authority observed that the Notice sent to the Appellant had returned…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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