# In the matter of Srigopal Choudhary vs. SREI Equipment Finance Limited

> NCLAT judgment dated 2024-01-03. Citation: TCN-2024-NCLAT-00714. The case involves an appeal against an order dated 12.12.2023 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 3 Jan 2024
- **Citation:** TCN-2024-NCLAT-00714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/srigopal-choudhary-vs-srei-equipment-finance-limited-018c394b

## Summary

### Background

The case involves an appeal against an order dated 12.12.2023 passed by the National Company Law Tribunal (NCLT), New Delhi, Court-III, which rejected IA No.3216 of 2023 filed by the Appellant to recall an order dated 07.06.2023. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor, M/s Ortel Communications Limited, was initiated based on an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by M/s Sony Pictures Networks Ltd. The Appellant, Srigopal Choudhary, was appointed as the Resolution Professional (RP). SREI Equipment Finance Limited, the Respondent, a financial creditor with 53.41% vote share, requested the RP to convene a meeting of the Committee of Creditors (CoC). The RP declined, stating that the Code does

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of M/s Ortel Communications Limited was initiated under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Sony Pictures Networks Ltd. Srigopal Choudhary was appointed as the Resolution Professional (RP). SREI Equipment Finance Limited, a financial creditor with a 53.41% vote share, requested the RP to convene a meeting of the Committee of Creditors (CoC) on 10.08.2021, and again on 18.10.2021. The RP refused, stating that the Code does not allow for CoC meetings until a resolution plan is approved. Consequently, SREI Equipment Finance Limited filed IA No.2121 of 2023 seeking the RP's removal. The NCLT issued notice on 25.04.2023, setting 12.05.2023 as the date for reply. The Appellant's counsel allegedly

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting IA No.3216 of 2023 filed by the …

**Ratio:** Rule 49 of the NCLT Rules, 2016, allows the Tribunal to set aside an ex-parte hearing if

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**Reasoning:** The Adjudicating Authority rejected the recall application, holding that no sufficient

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**Interpretation:** Rule 49 provides a mechanism for recalling ex-parte orders, but it requires the

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**Application:** In this case, the Appellant's explanation of a clerical error was deemed

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Srigopal Ch…
- **Respondents:** Ortel Communicatio…; SREI Equipment…
- **Advocates:** Abhishek…; Kushal B…; +4 more

## Timeline

- **2018-11-27 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) commenced for M/s Ortel Communications…
- **2019-02-01 — Appointment…**: Srigopal Choudhary was confirmed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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