# In the matter of Soma Network Engineering Pvt. Ltd. (IB)-339-(PB)-2018

> NCLT judgment dated 2018-07-31. Citation: TCN-2018-NCLT-01039. The case involves Arete Services Pvt. Ltd. as the applicant/petitioner and Soma Network…

- **Court:** NCLT
- **Order date:** 31 Jul 2018
- **Citation:** TCN-2018-NCLT-01039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/soma-network-engineering-pvt-ltd-ib-339-pb-2018-65052e01

## Summary

### Background

The case involves Arete Services Pvt. Ltd. as the applicant/petitioner and Soma Network Engineering Pvt. Ltd. as the respondent. The matter is under Section 7 of the Insolvency & Bankruptcy Code, IBC. The respondent was initially granted time until 2018-06-06 to file a reply, and subsequently, a final opportunity was given until 2018-07-10. However, the respondent failed to file a reply and requested further time.

## Facts

Arete Services Pvt. Ltd. initiated insolvency proceedings against Soma Network Engineering Pvt. Ltd. under Section 7 of the IBC. The NCLT granted Soma Network Engineering Pvt. Ltd. time until 2018-06-06 to file a reply. Soma Network Engineering Pvt. Ltd. did not file a reply and requested more time. The NCLT granted a final opportunity until 2018-07-10. Soma Network Engineering Pvt. Ltd. still failed to file a reply and again requested more time. The NCLT then ordered Soma Network Engineering Pvt. Ltd. to file a reply within one week, subject to a cost of Rs. 20,000. The case was listed for arguments on 2018-08-28. The repeated failure to file a reply is a key fact, demonstrating non-compliance with court orders.

## Issues and analysis

### Issue 1: Whether the respondent should be granted further time to file a reply despite repeated failures to …

**Ratio:** Courts have the discretion to manage proceedings efficiently and ensure timely compliance

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**Reasoning:** The court noted that the respondent had already been granted multiple opportunities to

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**Interpretation:** This issue concerns the court's power to enforce its orders and prevent undue

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**Application:** Given the respondent's repeated failures, the court ordered the respondent to

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Arete Services…
- **Respondents:** Soma Network…

## Timeline

- **2018-06-06 — Initial Deadline for…**: The respondent was initially granted…
- **2018-07-10 — Final Opportunity…**: A final opportunity was granted to the…

## 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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