In Brief
Jai Balaji Industries challenged an order of the National Company Law Appellate Tribunal that had directed admission of an insolvency application under Section 7 of the Insolvency and Bankruptcy Code. The appellant contended that it was never served proper notice of the appeal and was not afforded a hearing before the NCLAT decided the matter. The Supreme Court upheld this objection, finding that the NCLAT failed to comply with Rule 48 of the NCLAT Rules requiring formal service of notice and that no process fee for service had been paid. The Court set aside the NCLAT's order, finding a clear violation of the natural justice principle of audi alteram partem, and remanded the matter for fresh consideration with full hearing to all parties.
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