Notice Of NCLAT Appeal Has To Be Served Regardless Of Supply Of Advance Copy of Appeal Paper Book

In CIVIL APPEAL No.1929 OF 2019, JAI BALAJI INDUSTRIES LIMITED vs STATE BANK OF INDIA & ORS., the Supreme Court has observed that Rule 48 of the NCLAT Rules clearly stipulates service of notice on the other side, pursuant to issuance of notice by the NCLAT in the appeal, regardless of supply of advance copy of appeal paperbook prior to the issuance of notice by NCLAT. Further, Rule 52 of the NCLAT Rules categorically states that the judicial section of the registry of the NCLAT shall record, in the “Notes of the Registry” column in the order sheet, the details regarding completion of service of notice on the respondents.
Therefore, the court observed that, since no notice was served upon the company before the NCLAT as stipulated under the rules, and its right to be heard, audi alteram partem, has been violated.
The bench then set aside the NCLAT order and remanded the matter back to NCLAT with a direction to dispose of the matter as expeditiously as possible after affording an opportunity of hearing to the parties.

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