# In the matter of Q Top Fab Engineering Pvt. Ltd. Vs.Avon Engineering & Ors.,Company Appeal (AT) (Insolvency) No. 1334 of 2022
& I.A. No.4135 of 2022

> NCLAT judgment dated 2022-11-11. Citation: TCN-2022-NCLAT-00111. The appeal was filed against an order dated 27.07.2022, where the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 11 Nov 2022
- **Citation:** TCN-2022-NCLAT-00111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/q-top-fab-engineering-pvt-ltd-vsavon-engineering-orscompany-appeal-at-insolvency-aaf484f7

## Summary

### Background

The appeal was filed against an order dated 27.07.2022, where the Adjudicating Authority rejected I.A. No. 253 of 2020, filed by the Corporate Debtor, seeking the impleadment of Ex-Directors. The appellant contended that the balance sheet does not reflect any due amount. The Adjudicating Authority observed that the contentions in the application for both sides are kept open to be argued during the hearing of the main application.

## Facts

Q Top Fab Engineering Pvt. Ltd. filed an appeal against an order dated 27.07.2022, where the Adjudicating Authority rejected I.A. No. 253 of 2020, filed by the Corporate Debtor, seeking the impleadment of Ex-Directors. The appellant contended that the balance sheet does not reflect any due amount. The Adjudicating Authority observed that the contentions in the application for both sides are kept open to be argued during the hearing of the main application. The court condoned a delay of 5 days in filing the appeal and disposed of I.A. No. 4135 of 2022. The court dismissed the appeal, allowing the appellant to submit all relevant documents and contentions to the Adjudicating Authority. The court also noted that the non-impleadment of Ex-Directors would not affect the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the application for impleadment of …

**Ratio:** The Adjudicating Authority has the discretion to decide on applications for impleadment,

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**Reasoning:** The court noted that the Adjudicating Authority had already observed that the contentions

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**Interpretation:** The court interpreted the Adjudicating Authority's decision as not precluding

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**Application:** The court applied this reasoning to the present case by allowing the appellant

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Q Top Fab…
- **Respondents:** Avon Engineering…

## Timeline

- **2022-07-27 — Order Da…**: Order passed by Adjudicating…
- **2022-11-11 — Appeal F…**: Appeal filed against the order dated 27.07.2022. Delay of 5 days in filing the appeal is…

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