# In the matter of Sana Realtors Pvt. Ltd. Vs. Udeeksha Nangia Company Appeal (AT) (Insolvency) No. 280 of 2022

> NCLAT judgment dated 2022-05-06. Citation: TCN-2022-NCLAT-00495. This is a Company Appeal (AT) (Insolvency) No. 280 of 2022. The appeal was filed against the…

- **Court:** NCLAT
- **Order date:** 6 May 2022
- **Citation:** TCN-2022-NCLAT-00495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sana-realtors-pvt-ltd-vs-udeeksha-nangia-company-appeal-3ecea7f8

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 280 of 2022. The appeal was filed against the order dated 04.03.2022, by which the Adjudicating Authority rejected I.A. No. 923 of 2022 filed by the Appellant for recall of order dated 08.02.2022. The Adjudicating Authority had decided to proceed ex-parte against the Corporate Debtor because no reply was filed after a notice was issued in 2019. The Appellant's counsel tendered an apology for certain submissions made before the Adjudicating Authority on 04.03.2022. The Respondent's counsel argued that the Respondent (Appellant herein) was aware of the proceedings and chose not to appear or file a reply.

## Facts

Sana Realtors Pvt. Ltd. filed an appeal against an order dated 04.03.2022, where the Adjudicating Authority rejected I.A. No. 923 of 2022, which was an application to recall an earlier order dated 08.02.2022. The 08.02.2022 order was passed because no reply was filed for the Corporate Debtor after a notice was issued in 2019, leading the Adjudicating Authority to proceed ex-parte. The Appellant's counsel apologized for certain submissions made on 04.03.2022. The Respondent argued that the Appellant was aware of the proceedings but chose not to appear or file a reply, despite being granted time in 2019. The Adjudicating Authority had requested an affidavit to explain the delay. The next hearing was scheduled for 10.05.2022.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dated 04.03.2022, rejecting the recall application, …

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

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**Reasoning:** The court reasoned that, in the interest of justice, the Appellant should be given

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**Interpretation:** This issue involves interpreting the balance between procedural compliance and

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**Application:** The ratio was applied by setting aside the order dated 04.03.2022, which had

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## Parties

- **Judges:** Ashok Bh…; Shreesha…
- **Appellants:** Sana Realtors…
- **Respondents:** Udeeksha…

## Timeline

- **2022-03-04 — Order by Adjudicating…**: The Adjudicating Authority rejected I.A. No. 923 of 2022 filed by the Appellant for…
- **2022-02-08 — Order to proceed…**: The Adjudicating Authority passed an order to proceed ex-parte against the Corporate…

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