# In the matter of Jai Balaji Industries Limited Vs State Bank of India Civil Appeal No. 1929-2019

> SC judgment dated 2019-03-08. Citation: TCN-2019-SC-00084. This is an appeal against an order passed by the National Company Law Appellate Tribunal (NCLAT),…

- **Court:** SC
- **Order date:** 8 Mar 2019
- **Citation:** TCN-2019-SC-00084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/jai-balaji-industries-limited-vs-state-bank-of-india-civil-appeal-no-1929-2019-d80f4ac4

## Summary

### Background

This is an appeal against an order passed by the National Company Law Appellate Tribunal (NCLAT), New Delhi, which had set aside the order of the National Company Law Tribunal (NCLT), Calcutta, and directed the NCLT to admit an application filed by the respondent against the appellant under Section 7 of the Insolvency and Bankruptcy Code (IBC). The appellant contended that their right to be heard was violated as they were not served with a notice of the appeal before the NCLAT and were not given a hearing. The respondent argued that an advance copy of the appeal paperbook was served on the appellant.

## Facts

Jai Balaji Industries Limited (the appellant) filed an appeal against an order of the National Company Law Appellate Tribunal (NCLAT). The NCLAT had set aside an order of the National Company Law Tribunal (NCLT), Calcutta, which had refused to admit an application filed by State Bank of India (the respondent) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The appellant argued that it was not served with notice of the appeal before the NCLAT and was not given a hearing, violating the principle of audi alteram partem. The respondent claimed that an advance copy of the appeal paperbook was served on the appellant. The NCLAT had reserved judgment on 08.01.2019 and pronounced it on 08.02.2019. The appellant contended that the NCLAT's order was erroneous

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## Issues and analysis

### Issue 1: Whether the order passed by the National Company Law Appellate Tribunal (NCLAT) is valid when the …

**Ratio:** The principle of audi alteram partem, a fundamental principle of natural justice,

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**Reasoning:** The Supreme Court found that the material placed before it did not indicate that the

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**Interpretation:** The court interpreted Rule 48 of the NCLAT Rules to mean that proper service of

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**Application:** In this case, the court applied the principle of audi alteram partem and the

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## Parties

- **Judges:** N.V. RA…; Mohan M. Shantanag…
- **Appellants:** Jai Balaji…
- **Respondents:** State Bank of…

## Timeline

- **2018-10-10 — NCLT Ord…**: Order passed by the National Company Law Tribunal, Calcutta, which was later set aside by…
- **2019-01-02 — NCLAT Issues…**: The NCLAT issued notice on the question of…

## 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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