# In the matter of Call Express Construction (India) Pvt. Ltd. IA-587(CHE)-2021 in IBA-787-2020

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02924. The case involves an application (IA/587(CHE)/2021) filed in relation to an insolvency…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02924
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/call-express-construction-india-pvt-ltd-ia-587che-2021-in-iba-787-2020-a2b89244

## Summary

### Background

The case involves an application (IA/587(CHE)/2021) filed in relation to an insolvency proceeding (IBA/787/2020) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. Call Express Construction (India) Pvt Ltd, represented by its Director Mr. P.K. Ramesh, sought to set aside an ex-parte order dated 05.04.2021 passed by the NCLT in IBA/787/2020. The applicant's counsel argued that the applicant's absence was due to confusion regarding the cause list and the applicant being in self-quarantine due to a relative testing COVID positive. The respondent opposed the application, arguing that the notice of appearance clearly mentioned the court and time of the hearing and that the applicant's non-appearance was unacceptable. The respondent also questioned the

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## Facts

Call Express Construction (India) Pvt Ltd filed an application to set aside an ex-parte order dated 05.04.2021 in IBA/787/2020. The applicant's director, Mr. P.K. Ramesh, was authorized to represent the company. The applicant's counsel argued that the applicant's absence was due to confusion regarding the cause list and the applicant being in self-quarantine due to a relative testing COVID positive in March 2021. The respondent, BIR Hotels Private Limited, argued that the notice of appearance clearly mentioned the court and time of the hearing and that the applicant's non-appearance was unacceptable. The respondent also questioned the authorization of Mr. P.K. Ramesh to file the application, arguing that the Board Resolution was generic and not specific to this

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## Issues and analysis

### Issue 1: Whether the ex-parte order dated 05.04.2021 …

**Ratio:** The Tribunal has the power to set aside an ex-parte order if sufficient cause is shown

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**Reasoning:** The Tribunal found that the confusion caused to the Counsel was bonafide and in the

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**Interpretation:** The Tribunal interpreted the circumstances surrounding the applicant's

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**Application:** The Tribunal applied the principle that an ex-parte order can be set aside if

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Respondents:** Call Express…; BIR Hotels…

## Timeline

- **2020-02-07 — Board Resoluti…**: Board Resolution was passed authorizing Mr.P.K.Ramesh to perform acts/deeds on behalf of…
- **2021-03-01 — Applicant's Relative…**: Applicant's relative Mrs. Veronica Alexis Jeyaraj tested COVID positive, and the…

## 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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