# In the matter of Chempharma Industries India Pvt. Ltd. CA-574-C-II-18

> NCLT judgment dated 2018-09-14. Citation: TCN-2018-NCLT-00759. The case involves an application (CA 574/2018) filed by the Corporate Debtor seeking the recall…

- **Court:** NCLT
- **Order date:** 14 Sept 2018
- **Citation:** TCN-2018-NCLT-00759
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chempharma-industries-india-pvt-ltd-ca-574-c-ii-18-ddad3d84

## Summary

### Background

The case involves an application (CA 574/2018) filed by the Corporate Debtor seeking the recall of an ex-parte order dated 2018-09-04. The petition had been admitted without hearing the Corporate Debtor, leading to the application for setting aside the impugned order. Another applicant, M/s. Khokhar Electricals Pvt. Ltd., had approached the Bench for initiation of CIR proceedings.

## Facts

The Corporate Debtor, Chempharm Industries Pvt. Ltd., filed an application (CA 574/2018) seeking the recall of an ex-parte order dated 2018-09-04. The initial petition against the Corporate Debtor was admitted without providing them a hearing. The Corporate Debtor expressed willingness to pay the entire amount claimed, having already paid Rs. 17,93,3347/- via Demand Draft. Additionally, a cheque of Rs. 5,20,000/-, covering expenses and interest, was accepted by the Operational Creditor's counsel as full and final satisfaction. This amount included Rs. 2,00,000/- paid by the Operational Creditor to the IRP, which the Corporate Debtor reserves the right to recover subject to accounts being furnished. Another applicant, M/s. Khokhar Electricals Pvt. Ltd., had also

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## Issues and analysis

### Issue 1: Whether the ex-parte order dated …

**Ratio:** The principle of natural justice requires that all parties be given a fair opportunity to

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**Reasoning:** The court reasoned that the initial petition was admitted without hearing the Corporate

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**Interpretation:** The interpretation of Section 424(2)(g) allows the court to set aside orders

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ina Mal…; DEEPA KR…
- **Appellants:** M/s. Chempharm…
- **Respondents:** Chempharm…; M/s. Standard…

## Timeline

- **2018-09-04 — Ex-parte…**: Date of the ex-parte order that the…
- **N/A — Application by…**: CA 574/2018 filed by the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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