# In the matter of Jord Engineers India Ltd. Vs. Valia And Co. (D) Thr. Lrs Civil Appeal No. 7281 of 2018

> SC judgment dated 2022-03-28. Citation: TCN-2022-SC-00062. The case involves an appeal against an order passed by the National Company Law Appellate Tribunal…

- **Court:** SC
- **Order date:** 28 Mar 2022
- **Citation:** TCN-2022-SC-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/jord-engineers-india-ltd-vs-valia-and-co-77713fe8

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Appellate Tribunal (NCLAT) in a Company Appeal (AT) (Insolvency). The NCLAT had set aside the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the respondent, an operational creditor, alleging default in payment of Rs. 2 crores for goods supplied in 2012. The NCLAT set aside the admission order of the National Company Law Tribunal (NCLT) on the ground that the demand notice was served by an advocate without proper authorization. The respondent then filed a Special Leave Petition (SLP) in the Supreme Court, which remanded the matter back to the NCLAT. The appellant claims they were not present before the NCLAT when it examined the matter again.

## Facts

The respondent, Valia and Co. (D) Thr. Lrs, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming to be an operational creditor of the appellant, Jord Engineers India Ltd., due to a default of Rs. 2 crores for goods supplied in 2012. The National Company Law Tribunal (NCLT), Mumbai Bench, admitted the application. The National Company Law Appellate Tribunal (NCLAT) set aside the NCLT's order, citing that the demand notice was served by an unauthorized advocate. Valia and Co. then filed a Special Leave Petition (SLP) in the Supreme Court. The Supreme Court remanded the matter to the NCLAT. Jord Engineers India Ltd. claims it was not present before the NCLAT during the subsequent proceedings. The NCLAT then examined the matter with

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## Issues and analysis

### Issue 1: Whether the order passed by the National Company Law Appellate Tribunal (NCLAT) dated 09.07.2018 …

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

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**Reasoning:** The Supreme Court found that the appellant was not present before the NCLAT when it

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**Interpretation:** The interpretation of procedural fairness dictates that a party must have

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**Application:** In this specific case, the absence of the appellant from the NCLAT proceedings,

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## Parties

- **Judges:** DINESH MAHE…; ANIRUDDHA…
- **Respondents:** JORD ENGINEERS…; VALIA AND CO. (D)…

## Timeline

- **2012-01-01 — Goods Sup…**: Goods supplied for which Rs.…
- **2017-07-31 — NCLT Admi…**: Application admitted by the National…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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