IMPORTANT POINTRules of procedure are made to further the cause of justice and not to prove hindrance thereto.

JUDGMENT

SANJAY KUMAR, J

1. The short issue that arises for consideration in this appeal is whether an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 [For short, ‘the IBC], verified on 26.07.2023 but supported by an affidavit deposed to on 17.07.2023 would be liable to be rejected at the threshold on that ground.

2. The National Company Law Tribunal, Ahmedabad Bench [For short, ‘the NCLT’], opined so and non-suited the respondent-bank, vide order dated 18.06.2024 passed in C.P.(IB)/97(AHM)2024, its petition filed under Section 7 of the IBC against the appellant-company[For short, ‘the company’]. Disgruntled therewith, the respondent-bank filed an appeal in Comp. App. (AT) (Ins) No. 1534 of 2024 before the National Company Law Appellate Tribunal, Principal Bench, New Delhi, [For short, ‘the NCLAT’]. By order dated 27.08.2025, the NCLAT allowed the appeal and restored C.P.(IB)/97(AHM)2024 to its original number. The matter was remanded to be decided on merits and in accordance with law. Aggrieved thereby, the company is in appeal under Section 62 of the IBC.

3. As only the ambit and effect of the aforestated procedural aspect needs to be addressed and we are not concerned with the merits of the matter, we need not advert to the facts in extenso. Suffice it to state that the company availed a loan facility from the respondent-bank to the tune of Rs.5.5 crores and the same came to be classified as a non-performing asset on 04.08.2019. Ultimately, the respondent-bank filed an application under Section 7 of the IBC. This application was filed in Form 1 appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, in consonance with Rule 4(1) therein, titled ‘Application by financial creditor’. Rule 4(1) requires a financial creditor, either by itself or jointly, to make the application for initiating the corporate insolvency resolution process against a corporate debtor under Section 7 of the IBC in Form 1, accompanied with documents and records required therein and as specified in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

4. Significantly, neither Rule 4(1) nor Form 1 requires the said application to be supported by an affidavit. It is Rule 34(4) of the National Company Law Tribunal Rules, 2016, [For short, ‘the NCLT Rules’], that prescribes that every petition or application made before the National Company Law Tribunal shall be verified by an affidavit in Form No. NCLT.6. It would be apposite, at this stage, to note the scheme of the NCLT Rules to the extent relevant for our purposes. Part-III of the NCLT Rules is titled ‘Institution of proceedings, petition, appeals etc.’ Rule 20 to Rule 27 therein set out the procedural norms to be followed in every appeal or petition or application, amongst others, to be filed before the National Company Law Tribunal.

5. Rule 28 therein pertains to the scrutiny of the petition or appeal or document. Rule 28(1) states to the effect that the person in charge of the filing counter shall assign a diary number upon receipt of the petition or appeal or application; enter the particulars of what has been filed in the Register and, thereafter, cause it to be sent for scrutiny. Rule 28(2) provides that, if the appeal or petition or application is found to be defective on such scrutiny, the same shall, after notice to the party, be returned for compliance and if there is a failure to comply within seven days from the date of return, the same shall be placed before the Registrar who may pass appropriate orders. Rule 28(3) states that the Registrar may, for sufficient cause, return the said document for rectification to the party filing the same and, for this purpose, he may allow such party such reasonable time as he may consider necessary or extend the time for compliance. Rule 28(4) states that if the party fails to take steps for the removal of the defect within the time fix