# In the matter of Mindtree Exports Pvt. Ltd. Vs Ashmita Multitrade Ltd. & Anr. CA (AT) No. 98-2017

> NCLAT judgment dated 2017-07-31. Citation: TCN-2017-NCLAT-00149. The respondent company claimed to be a 'Financial Creditor' under Section 5(7) of the…

- **Court:** NCLAT
- **Order date:** 31 Jul 2017
- **Citation:** TCN-2017-NCLAT-00149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mindtree-exports-pvt-ltd-vs-ashmita-multitrade-ltd-anr-ca-24ef548c

## Summary

### Background

The respondent company claimed to be a 'Financial Creditor' under Section 5(7) of the Insolvency and Bankruptcy Code, 2016 (I&B Code) and filed an application under Section 7 of the I&B Code to initiate Corporate Insolvency Resolution Process against the appellant, who is the 'Corporate Debtor'. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the application, declared a 'Moratorium' under Section 14 of the I&B Code, and appointed an Interim Resolution Professional based on an order dated June 13, 2017. The appellant challenges this order.

## Facts

Mindtree Exports Private Limited (Appellant) is the 'Corporate Debtor'. M/s. Ashmita Multitrade Private Limited & Anr. (Respondents) claimed to be 'Financial Creditors'. The Respondents initially claimed to be 'Operational Creditors' and filed an application under Section 9 of the I&B Code, which was later withdrawn. They then filed a separate application under Section 7 of the I&B Code, claiming to be 'Financial Creditors'. The Adjudicating Authority admitted the application and declared a moratorium. The Appellant claims they were not given notice of the application and were not heard before the order was passed. The Adjudicating Authority recorded that the 'Financial Creditor' sent a notice demanding Rs. 5,37,00,000/- but did not ascertain if the notice

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in passing the impugned order without issuing notice to …

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

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**Reasoning:** The court found that the Adjudicating Authority passed the order without issuing notice

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**Interpretation:** The interpretation emphasizes the importance of procedural fairness and the

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**Application:** The ratio applies to the specific facts because the Corporate Debtor was not

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** Mindtree Exports…; M/s. Ashmita…
- **Advocates:** P. Na…; Karan G…; +1 more

## Timeline

- **2017-02-15 — Notice sent by…**: The 'Financial Creditor' sent a notice to the 'Corporate Debtor' demanding a sum of Rs.…
- **2017-04-04 — Initial Application by…**: The respondent initially claimed to be an 'Operational Creditor' and preferred an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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