Authority: National Company Law Tribunal (NCLT), New Delhi Bench Court-V

Order Date: 12.06.2026

Case Overview

This order pertains to a Restoration Application (IBC)/16 (ND) 2026 filed by Mr. Jatin Gupta, a director of M/s Zeal Impressions Pvt. Ltd. (the Corporate Applicant). The application was filed under Rule 11 of the NCLT Rules, 2016, seeking to recall and set aside the tribunal's order dated 08.12.2025. On that date, the main Company Petition CP(IB) No. 489/ND/2025, which was an application filed by the company under Section 10 of the Insolvency and Bankruptcy Code, 2016, was dismissed for non-prosecution.

The applicant argued that the dismissal was due to procedural lapses and not on the merits of the case. Specifically, on the hearing date of 30.10.2025, while counsel was present, an inadvertent error occurred during the recording of appearances, mistakenly reflecting the applicant's counsel under the respondent's column. This led the court record to show "no appearance" for the applicant. Furthermore, the applicant had not filed certain documents as directed by the tribunal in its order dated 12.09.2025. The applicant submitted that these were bona fide errors without any intention to abandon the proceedings and requested restoration.

The tribunal examined the provisions of Rule 48 of the NCLT Rules, 2016, which provides for restoring an application dismissed for default if the applicant files for restoration within 30 days and shows sufficient cause for non-appearance. The tribunal noted that the present application was filed on 10.03.2026, which is well beyond the 30-day limit prescribed under Rule 48(2). However, invoking its inherent powers under Rule 11 to meet the ends of justice, the tribunal considered the applicant's explanations for the procedural lapses.

Final Outcome

The National Company Law Tribunal allowed the restoration application. The order dated 08.12.2025, which dismissed CP(IB) No. 489/ND/2025 for non-prosecution, was recalled and set aside. The main company petition is restored to its original stage. The restoration is granted subject to the condition that the applicant pays a cost of ₹2,00,000 (Two Lakh Rupees) to the Prime Minister's National Relief Fund. Proof of this payment must be submitted within one week from the date of this order (12.06.2026). The main petition has been listed for its next hearing on 10.07.2026.

Topics: Insolvency Proceeding, Legal Restoration