# 27th Mar 2019 Aditya Vidyut Appliances Ltd (IB)2802(MB)-2018

> NCLT judgment dated 2019-03-27. Citation: TCN-2019-NCLT-04317. The case involves a dispute before the National Company Law Tribunal (NCLT), Mumbai Bench,…

- **Court:** NCLT
- **Order date:** 27 Mar 2019
- **Citation:** TCN-2019-NCLT-04317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/27th-mar-2019-aditya-vidyut-appliances-ltd-ib2802mb-2018-4b0224fe

## Summary

### Background

The case involves a dispute before the National Company Law Tribunal (NCLT), Mumbai Bench, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was granted an opportunity to file a reply, subject to payment of Rs. 10,000 as costs to be paid into the Prime Minister's National Relief Fund. The Corporate Debtor's counsel stated they would not file a reply but had brought a cheque for deposit.

## Facts

Oswal Valves Pvt Ltd initiated proceedings against Aditya Vidyut Appliances Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016. The NCLT, Mumbai Bench, ordered the Corporate Debtor, Aditya Vidyut Appliances Ltd, to pay Rs. 10,000 as costs into the Prime Minister's National Relief Fund for the opportunity to file a reply. The Corporate Debtor's counsel stated they would not file a reply but had the cheque for deposit. The NCLT then directed the Corporate Debtor to immediately deposit the cost amount and file an affidavit of payment within three days. Both parties were directed to file hard and soft copies of written submissions by 2019-04-01.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be compelled to deposit the costs as previously ordered by the …

**Ratio:** The principle of compliance with court orders is paramount. Parties are expected to

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**Reasoning:** The NCLT had previously ordered the Corporate Debtor to pay costs for the opportunity to

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**Interpretation:** The interpretation of the NCLT's order is that the payment of costs is a

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**Application:** The NCLT applied the principle of compliance by directing the Corporate Debtor

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Oswal Valves Pvt.…
- **Respondents:** Aditya Vidyut…

## Timeline

- **2018-01-01 — Case Fil…**: C.P. No.(IB)2802(MB)/201…
- **2019-01-22 — Opportunity to File…**: The NCLT granted the Corporate Debtor an opportunity to file a reply, subject to payment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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