# Bhagwati Lacto Vegetarian Exports Pvt. Ltd. vs. RB Assets And Developers Pvt. Ltd.

> NCLT judgment dated 2026-09-10. Citation: TCN-2026-NCLT-01176. Bhagwati Lacto Vegetarian Exports Pvt. Ltd. (Corporate Debtor/Applicant in IA) filed an…

- **Court:** NCLT
- **Order date:** 10 Sept 2026
- **Citation:** TCN-2026-NCLT-01176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhagwati-lacto-vegetarian-exports-pvt-ltd-zd6f1

## Summary

### Background

Bhagwati Lacto Vegetarian Exports Pvt. Ltd. (Corporate Debtor/Applicant in IA) filed an application under Section 60(5) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016, seeking the rejection and removal from record of a Rejoinder filed by RB Assets And Developers Pvt. Ltd. (Operational Creditor/Petitioner in main CP). The Applicant contended that the Rejoinder, filed on 11.07.2024, was an attempt to rectify defects pointed out in its Reply to the main petition and introduced fresh annexures and new material, which it argued was impermissible and violated principles of natural justice.

## Facts

Bhagwati Lacto Vegetarian Exports Pvt. Ltd. (Applicant/Corporate Debtor) filed its Reply to the main petition on 29.04.2024.

The Applicant's Reply raised objections, including incomplete ledger accounts with an unexplained opening balance of Rs. 14,39,24,435/-, non-reflection of a Rs. 11,00,000/- payment in the Petitioner's books, omission of various purchase orders and invoices, non-effect of deductions (TDS, Adhat, labour), and inconsistency between the date of default pleaded and the Bank Certificate (Annexure A-9).

The Applicant's Reply was taken on record vide order dated 09.05.2024, granting the Petitioner an opportunity to file a reply.

RB Assets And Developers Pvt. Ltd. (Petitioner/Operational Creditor) subsequently filed a Rejoinder on 11.07.2024.

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## Issues and analysis

### Issue 1: Whether the Rejoinder filed by the Petitioner should be rejected for introducing new material and …

**Ratio:** The NCLT, exercising jurisdiction under IBC, is not bound by CPC and has wide latitude

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**Reasoning:** The Tribunal found that the Applicant's objections concerned the evidentiary worth and

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**Interpretation:** The NCLT's procedural flexibility under Rule 11 allows for the acceptance of

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**Application:** The application for rejection of the Rejoinder is denied, but the Corporate

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## Parties

- **Judges:** KHETRABASI…; SHISHIR A…
- **Respondents:** Bhagwati Lacto…; RB Assets &…
- **Advocates:** Surjeet…; Veer S…; +3 more

## Timeline

- **2024-04-29 — Reply Fi…**: The Applicant (Bhagwati Lacto Vegetarian Exports Pvt. Ltd.) filed its Reply to the main…
- **2024-05-09 — Reply Taken o…**: The Applicant's Reply was taken on record, and the Petitioner was granted an opportunity…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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