# In the matter of Vinay Kumar Ramchhoddas Mohota Vs. Shree Shyam Trading Company & Anr. Company Appeal (A) (Insolvency) No. 235 of 2022

> NCLAT judgment dated 2022-03-10. Citation: TCN-2022-NCLAT-00583. The appeal was filed against an order dated 2021-08-30 by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 10 Mar 2022
- **Citation:** TCN-2022-NCLAT-00583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinay-kumar-ramchhoddas-mohota-vs-shree-shyam-trading-company-anr-company-appeal-97596772

## Summary

### Background

The appeal was filed against an order dated 2021-08-30 by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which admitted an application under Section 9 filed by the Respondent. The Respondent had issued a notice under Section 8 to the Appellant for its operational debt, which was not replied to. Subsequently, the Operational Creditor filed an application under Section 9, which was also not replied to. The Adjudicating Authority granted several opportunities, but the Appellant did not file any reply. The Corporate Debtor was given many opportunities to file the reply on several occasions since beginning but the Corporate Debtor did not bother to file reply. The Adjudicating Authority proceeded ex-parte and admitted the application.

## Facts

The Respondent, Shree Shyam Trading Company, issued a notice under Section 8 to the Appellant, Vinay Kumar Ranchhoddas Mohota, for its operational debt, as per a demand notice dated 2019-11-25, which was not replied to by the Appellant. Subsequently, the Operational Creditor filed an application under Section 9, which was also not replied to. The Adjudicating Authority granted several opportunities to the Appellant to file a reply, but the Appellant did not avail of these opportunities. The Adjudicating Authority noted that the matter had come up for hearing on several occasions. The Corporate Debtor was given many opportunities to file the reply on several occasions since beginning but the Corporate Debtor did not bother to file reply. The Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 9, given that …

**Ratio:** The Adjudicating Authority is empowered to proceed ex-parte when a party fails to avail

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**Reasoning:** The court reasoned that after ample opportunities were granted by the Adjudicating

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**Interpretation:** This legal issue concerns the procedural fairness and the Adjudicating

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**Application:** In this specific case, the Appellant was given multiple opportunities to

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** Vinay Kumar…
- **Respondents:** Shree Shyam…

## Timeline

- **2019-11-25 — Demand N…**: Respondent issued a demand notice under Section…
- **2020-01-09 — Hearing…**: Counsel for the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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