Pioneer Polyleathers Limited vs Printech Digital Imaging Private Limited

Rajeswara Rao Vittanala, J

I.A. No. 201 of 2020 in CA (CAA) No. 63/BB/2019 is filed by Pioneer Polymers Limited (hereinafter referred to as 'Applicant/Petitioner') under Rule 48(2) r/w Rule 11 of the NCLT Rules 2016 by inter alia seeking to restore CP (IB) No. 83/BB/2020 on file by setting aside the impugned order dated 28.02.2020.

Heard Mr. Venkatesh Dayanand, Learned PCS for the Applicantthrough Video Conference. We have carefully perused the pleadings of the Party and extant provisions of the Code and the Rules made thereunder.

Mr. Venkatesh Dayanand, the Learned Counsel for the Applicant, while reiterating various averments made in the Application, as briefly stated supra, has further submitted that the Operational Creditor supplied goods to the Respondent and raised invoices claiming total amount of Rs. 18,87,169/- (Rupees Eighteen Lakhs Eighty Seven Thousand One Hundred and Sixty Nine only) by the Corporate Debtor. When the Corporate Debtor failed to pay the outstanding amount, the Applicant/Operational Creditor issued statutory demand notice dated 19.08.2019 calling upon the Respondent to pay the outstanding amount within the period of 10 days or else intimate if any dispute is there. However, the Respondent failed to pay the outstanding amount. Hence the main company petition was filed. However, the Counsel could not represent the case when it is posted before the Bench and thus dismissed the case for default. He further submitted the due to frequent travel of Director, during the months of January and February; the authorisation of assignment for the appointment of the IRP was delayed to 21.02.2020. Further there was a delay in the reception of the written communication along with the affidavit from the IRP Mr. V. Gnanaprasad and the same was received only on 7th March 2020. The following Memo were duly fried:

a. Memo towards 'Change of address' of Printech Digital Imaging Private Limited,

b. Memo towards appointment of IRP

c. Memo towards the observations of the NCLT, Bengaluru Bench dated 10.12.2019

The delay caused in filing the petition was not intentional and was merely circumstantial. We regret for the inconvenience caused and humbly request NCLT to condone the delay and restore our petition for admission and hearing.

The Company petition was dismissed by default vide order dated 28.02.2020 by observing as follows:

"The Petition was filed before the Adjudicating Authority on 10.02.2019 through diary No. 7174 and on scrutiny of the same, office objection was raised. So far the Counsel/PCA/PCS has not taken any steps to rectify the office objection, because the office objection note has not been sent to Counsel/PCS/PCA through email as they have not provided mail ID and also not visited Registry for collection of scrutiny slip. In view of the above, the application/petition was posted before the Bench for orders regarding non-compliance of the office objection on 27.02.2020. However, on that day neither the Petitioner nor the Counsel for the Petition appeared before the Adjudicating Authority.

The case was hence posted under the caption "for dismissal" for 28.02.2020. Today also i.e., on 28.02.2020 neither the Petitioner nor Counsel for the Petitioner appeared before the Adjudicating Authority. This shows that the Petitioner is not interested in prosecuting the case, and therefore, the petition is liable to be dismissed for default for non-compliance of the office objection.

In the result CP (IB) No. 83/BB/2020 is dismissed for default for non- compliance of the office objection"

Since the Petitioner has complied with the office objections and also explained satisfactorily the delay for non-prosecuting the case, we are inclined to allow the application by restoring the company petition CP (IB) No. 83/BB/2020 in the interest of justice and duly following principle of ease of doing business.

In the result, I.A. No. 201 of 2020 in CP (IB) No. 83/BB/2020is allowed by setting aside the impugned order dated 28.02.2020, and consequently restored the CP (IB) No. 83/BB/2020 on file.