# In the matter of Sarath Kumar vs. Suzlon Gujarat Wind Park Ltd. & Ors.

> NCLAT judgment dated 2023-09-29. Citation: TCN-2023-NCLAT-00155. This case involves an appeal against an order dated 09.02.2023 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 29 Sept 2023
- **Citation:** TCN-2023-NCLAT-00155
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sarath-kumar-vs-suzlon-gujarat-wind-park-ltd-ors-896c0a95

## Summary

### Background

This case involves an appeal against an order dated 09.02.2023 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench-IV, which admitted a Section 9 application filed by the Respondent, an Operational Creditor, against the Corporate Debtor. The Corporate Debtor failed to make required payments as per the Demand Notice, leading the Operational Creditor to file the Section 9 application seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority directed the issuance of notice to the Corporate Debtor, but the Corporate Debtor did not appear, leading to ex-parte proceedings. The Corporate Debtor filed an IA for recall of the order, but it was not listed due to defects.

## Facts

Sarath Kumar, the Appellant, filed an appeal against the order dated 09.02.2023 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench-IV. The Adjudicating Authority admitted a Section 9 application filed by Suzlon Gujarat Wind Park Ltd., the Respondent and Operational Creditor, against the Corporate Debtor. The Operational Creditor filed the Section 9 application on 13.07.2021, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor because the Corporate Debtor failed to make required payments as per the Demand Notice. The Adjudicating Authority directed the issuance of notice to the Corporate Debtor on 17.09.2021, with 15.11.2021 set as the next hearing date. The Operational Creditor took steps for

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order violated the Principles of Natural Justice by not …

**Ratio:** The principle of natural justice requires that parties be given a fair hearing and an

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**Reasoning:** The Tribunal found that the Corporate Debtor was given multiple opportunities to appear

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**Interpretation:** The principle of natural justice is interpreted to mean that a party must be

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**Application:** In this case, the Corporate Debtor was given ample opportunity to appear before

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Sarath…
- **Respondents:** Suzlon Gujarat…
- **Advocates:** Aslam A…; Abhishek D…; +5 more

## Timeline

- **2021-07-13 — Section 9 Application…**: Operational Creditor filed Section 9 application seeking to initiate CIRP against the…
- **2021-09-17 — Notice to Corporate…**: Adjudicating Authority directed to…

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