# In the matter of Narendra Rajani Erstwhile Director, Whiz Enterprises Pvt. Ltd. vs. Pegasus Assets Reconstruction Pvt. Ltd. & Anr.

> NCLAT judgment dated 2023-06-01. Citation: TCN-2023-NCLAT-00470. The appeal challenges an order dated 20.04.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 1 Jun 2023
- **Citation:** TCN-2023-NCLAT-00470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/narendra-rajani-erstwhile-director-whiz-enterprises-pvt-ltd-vs-pegasus-assets-re-032332de

## Summary

### Background

The appeal challenges an order dated 20.04.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai), which admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by the Financial Creditor. The appellant contends that the Adjudicating Authority considered a rejoinder that was previously rejected by the court.

## Facts

Narendra Rajani, the erstwhile director of Whiz Enterprises Pvt. Ltd., filed an appeal against an order dated 20.04.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai). The order admitted an application filed by the Financial Creditor, Pegasus Assets Reconstruction Pvt. Ltd., under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant argued that the Adjudicating Authority improperly considered a rejoinder that had been previously rejected by orders dated 08.07.2022 and 16.12.2022. The appellant contended that the Adjudicating Authority's reference to the rejected rejoinder demonstrated a lack of due consideration of prior orders, rendering the impugned order flawed. The respondent did not dispute the existence of the two

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in considering a rejoinder that had been previously …

**Ratio:** An order is considered patently illegal if it takes into consideration pleadings that are

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority's reference to the rejoinder, which

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**Interpretation:** The interpretation is that an adjudicating authority must base its decisions

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**Application:** The Adjudicating Authority's order was deemed illegal because it considered the

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** Narendra Rajani…
- **Respondents:** Pegasus Assets…
- **Advocates:** Abjijeet…; Puneet…; +9 more

## Timeline

- **2023-04-20 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Mumbai) passed an order…
- **2022-07-08 — Rejection of R…**: The prayer for filing of rejoinder was…

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