# In the matter of Bank of Baroda vs. Udham Singh Sharma & Anr.

> NCLAT judgment dated 2024-05-29. Citation: TCN-2024-NCLAT-00399. Bank of Baroda filed four appeals challenging the order dated 01.05.2024, passed by the…

- **Court:** NCLAT
- **Order date:** 29 May 2024
- **Citation:** TCN-2024-NCLAT-00399
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bank-of-baroda-vs-udham-singh-sharma-anr-9b54c7b1

## Summary

### Background

Bank of Baroda filed four appeals challenging the order dated 01.05.2024, passed by the Adjudicating Authority. The Adjudicating Authority had allowed the Restoration Application filed by the Bank of Baroda but imposed a cost of Rs. 1 Lakh. The orders passed in all four Restoration Applications were identical. The application sought recall of the order dated 13.03.2024 and directions for the Restoration / Revival of the Company Petition bearing CP (IB) No. 593/2021 titled "Bank of Baroda through Reshma Mittal vs Udham Singh Sharma".

## Facts

Bank of Baroda filed four appeals challenging the order dated 01.05.2024, by which the Adjudicating Authority allowed the Restoration Application but imposed a cost of Rs. 1 Lakh. The Adjudicating Authority had dismissed an application on 13.03.2024 for non-prosecution because the Resolution Professional (RP) had not filed reports. The RP had been directed to submit a report under Section 99 of the Insolvency and Bankruptcy Code, 2016. The RP had submitted the report, which was noticed on 27.02.2024, but had not filed the AFA ("Authorisation for Assignment"). The Adjudicating Authority recalled the order but imposed a cost of Rs. 1 Lakh. The amount of claim in this matter is about 14 crores. The court found no reason to impose the cost on the Bank of Baroda,

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## Issues and analysis

### Issue 1: Whether the imposition of cost of Rs. 1 Lakh on the Bank of Baroda by the Adjudicating Authority …

**Ratio:** The imposition of costs should be based on valid reasons and should be proportionate to

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**Reasoning:** The court reasoned that the liability to file AFA was of the RP, and if there was a

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**Interpretation:** The court interpreted that the Adjudicating Authority's imposition of cost was

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**Application:** The court applied this reasoning to the specific facts, noting that the Bank of

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Bank of B…
- **Respondents:** Udham Singh…

## Timeline

- **2024-05-29 — Appeals…**: Bank of Baroda filed four appeals…
- **2024-05-01 — Order Chal…**: Adjudicating Authority allowed the Restoration Application but imposed a cost of Rs. 1…

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