Authority: National Company Law Tribunal (NCLT), Ahmedabad Bench - Court 2
Order Date: 06/07/2026
Case Overview
The matter involves proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC) between Jain Sons Finlease Ltd (Applicant) and Sort India Enviro Solutions Ltd (Respondent/Corporate Debtor). The Corporate Debtor was ordered into liquidation on 25.08.2022. The hearing pertained to five interconnected applications: IA/581(AHM)2021, IA/583(AHM)2021, IA/87(AHM)2022, Cont.A/01(AHM)2022, and IA/590(AHM)2021. The contempt application (Cont.A/01(AHM)2022) was filed subsequent to the liquidation order, while the other applications were filed prior to it. The principal issue before the Tribunal was the consistent non-appearance of the applicant's learned counsel on many earlier dates of hearing. Furthermore, although a substitution was previously allowed, the applicant had not carried out the necessary amendments to the memo or served the amended memo upon the respondents. A proxy counsel, Ms. Arzoo Gupta (appearing for Ms. Mitika Agrawal), represented respondents 1 & 2 in IA/590(AHM)2021 and brought this non-compliance to the Tribunal's attention. The liquidator for the corporate debtor was also absent for the hearing.
Final Outcome
The Tribunal, comprising Mrs. Chitra Hankare (Member-Judicial) and Dr. Velamur G Venkata Chalapathy (Member-Technical), granted a last opportunity to the learned counsel for the applicant to remain present at the next hearing and "do the needful" in the matter. The order explicitly states that if the counsel fails to comply by the next date, the Tribunal shall pass appropriate orders. Regarding the liquidator's absence, the Tribunal noted that the liquidator had not been appearing on many dates despite the pending applications. Consequently, the Registry was directed to send a copy of the order to the Insolvency and Bankruptcy Board of India (IBBI) for information and appropriate action. The matter has been listed for further consideration on 03.08.2026.
Topics: NCLT Proceeding, Insolvency Litigation, Liquidator Conduct