# In the matter of Jaiprakash Agarwal vs. Alka Prakash Agarwal & Ors.

> NCLAT judgment dated 2024-07-02. Citation: TCN-2024-NCLAT-00359. This is an appeal filed under Section 61 of the Insolvency and Bankruptcy Code 2016 (IBC) by…

- **Court:** NCLAT
- **Order date:** 2 Jul 2024
- **Citation:** TCN-2024-NCLAT-00359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaiprakash-agarwal-vs-alka-prakash-agarwal-ors-5ad09831

## Summary

### Background

This is an appeal filed under Section 61 of the Insolvency and Bankruptcy Code 2016 (IBC) by the Appellant against the order dated 03.02.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-V) in C.P. (IB) No. 196/MB/2021. The Adjudicating Authority allowed the Section 7 application filed by Alka Prakash Agarwal and admitted Bazargaon Paper & Pulp Mills Pvt. Ltd.-Corporate Debtor into the Corporate Insolvency Resolution Process (CIRP). The suspended director of the Corporate Debtor has preferred this appeal.

## Facts

Bazargaon Paper & Pulp Mills Pvt. Ltd. (Corporate Debtor) took an unsecured loan of Rs.70 lakhs from Alka Prakash Agarwal (Respondent No.1) based on an oral agreement. The loan was repayable on demand with interest rates varying from 15% to 18% p.a. simple interest. The Corporate Debtor repaid Rs.1.16 cr to the Respondent No.1 between 2010 and 2017, including Rs.70 lakhs towards principal and Rs.46 lakhs towards interest. The Respondent No.1 filed a Section 7 application before the Adjudicating Authority, claiming that the Corporate Debtor had defaulted in repaying the debt. The Appellant (suspended director of the Corporate Debtor) contended that the Respondent No.1's claim was based on doctored claims and forged documents, including a forged statement of

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## Issues and analysis

### Issue 1: Whether the impugned order was passed ex-parte against the Appellant in violation of the principles …

**Ratio:** Real and effective opportunity to hear is one of the critical quotients of the tenets of

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**Reasoning:** The Appellant did not appear before the Adjudicating Authority on multiple occasions,

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**Interpretation:** The principle of natural justice requires that a party be given a fair

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**Application:** The NCLAT found that the Appellant had been given adequate notice to appear

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## Parties

- **Judges:** Barun M…
- **Appellants:** Jaiprakash…
- **Respondents:** Bazargaon Paper &…; Alka Prakash…

## Timeline

- **2023-02-03 — Order by Adjudicating…**: Adjudicating Authority passed an order allowing the Section 7 application filed by Alka…
- **2023-01-01 — Filing of…**: The suspended director of the Corporate Debtor filed an appeal against the order of the…

## Legal provisions

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

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