# In the matter of Mr. Piyush Vs. Reliance Commercial Finance Ltd. & Anr. CA (AT) No. 191-2017

> NCLAT judgment dated 2017-12-13. Citation: TCN-2017-NCLAT-00012. This appeal was filed by the authorised signatory of the suspended Board of Directors of…

- **Court:** NCLAT
- **Order date:** 13 Dec 2017
- **Citation:** TCN-2017-NCLAT-00012
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-piyush-vs-reliance-commercial-finance-ltd-anr-ca-0a9d9357

## Summary

### Background

This appeal was filed by the authorised signatory of the suspended Board of Directors of Maharashtra Vidyut Nigam Pvt. Ltd. (Corporate Debtor) against an order dated August 4, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The Adjudicating Authority had admitted an application preferred by the respondent, Reliance Commercial Finance Limited (Financial Creditor), under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiated moratorium, and appointed an Interim Resolution Professional.

## Facts

The authorised signatory of the suspended Board of Directors of Maharashtra Vidyut Nigam Pvt. Ltd. (Corporate Debtor) filed an appeal against the order passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, on August 4, 2017. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Reliance Commercial Finance Limited (Financial Creditor). The appellant contended that the order was passed in violation of natural justice, as no notice was given to the Corporate Debtor before passing the order. The parties had already settled the dispute through a compromise agreement dated December 13, 2017. The respondent acknowledged that the impugned order was passed without notice to the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dated August 4, 2017, was passed in violation of the …

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

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**Reasoning:** The court reasoned that the Adjudicating Authority's order was passed without providing

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**Interpretation:** The interpretation of natural justice requires adherence to procedural

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**Application:** In this case, the Adjudicating Authority's failure to provide notice to the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Piyu…
- **Respondents:** Maharashtra…; Reliance Commercia…

## Timeline

- **2017-08-04 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, passed an order…
- **2017-12-13 — Compromise Ag…**: The parties reached a compromise…

## 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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