2026 Supreme(Online)(NCLAT) 812
NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI
Sharad Kumar Sharma, Judicial Member, Indevar Pandey, Technical Member
Icatalyst Wealth Advisors Pvt. Ltd. – Appellant
Versus
Sir John Bakeries India Pvt. Ltd. – Respondent
Company Appeal (AT) (Ins) No. 2047 of 2025
For the Appellants/Petitioners: Shubham Sharma, Kirti Gupta
For the Respondents:
A litigant cannot be penalized for the mistake or dereliction of their counsel. The limitation period for restoration under Rule 48 of the NCLT Rules, 2016, is not an absolute bar and can be condoned using the Tribunal's inherent powers under Rule 11 to ensure justice.
Headnote:(A) Restoration of Application - Non-appearance of Counsel - A litigant should not be made to suffer due to the dereliction or mistake of their counsel, particularly when the absence was not deliberate or intentional. (Para 7, 9)
(B) NCLT Rules, 2016 - Rule 48 and Rule 11 - The 30-day limitation period for filing a restoration application under Rule 48(2) is not an absolute bar and must be read harmoniously with the inherent powers of the Tribunal under Rule 11 to meet the ends of justice. (Para 6)
Issues: Whether the restoration application should be allowed despite the delay and the absence of the counsel on the date of hearing.
| Table of Content |
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| 1. background of the dismissal of the company petition for want of prosecution and the subsequent rejection of the restoration application by nclt. (Para 1 , 2 , 3 , 4) |
| 2. appellant's contention regarding the filing of a delay condonation application that was not registered by the registry. (Para 5) |
| 3. harmonious construction of rule 48 (limitation for restoration) and rule 11 (inherent powers) of the nclt rules, 2016. (Para 6) |
| 4. legal principle that a party should not suffer for the dereliction or mistake of their legal counsel. (Para 7 , 8 , 9) |
| 5. quashing of the impugned order and restoration of the company petition to its original number. (Para 10) |
JUDGEMENT
Per Justice Sharad Kumar Sharma, Member (Judicial)
The brief facts are, that the appellant was an applicant to the proceedings under Section 7 of I&B Code which was drawn as against the respondent/corporate debtor. Those proceedings were registered before NCLT as CP(IB) 2689/ND/2019. Owing to the absence of the learned Counsel of the appellant, the company petition was dismissed for want of prosecution by an Order that, was passed on 17.03.2025.
2. Seeking its recall, a restoration application was preferred by the appellant by filing the same before the Registry on 15.09.2025 contending thereof that, the reasons for non-appearance on the date, has been that, since a wrong timing had been noted of sitting of the Bench and because of the fact that, the matter was shown to be listed before the Bench at 02.30 p.m. but, however, on 17.03.2025, the Bench assembled much earlier at 10.30 a.m. Hence the case skipped attention of the Counsel. It is because of which, the advocate could not appear when the matter was called and the same was dismissed for want of prosecution.
3. Seeking its recall, a restoration application was preferred by the appellant by filing the same on 15.09.2025, praying to recall the Order dated 17.03.2025 and to restore the company petition to its original number. The reason that was attributed therein was that the absence of 17.03.2025 was on account of the Counsel’s failure to appear and the absence was not deliberate or intentional. It is this application which came up for consideration before the learned Tribunal and has been rejected by the impugned order dated 09.10.2025.
4. The learned Tribunal took the view that, since the application for restoration has been preferred under Rule 11 to be read with Rule 48 of the NCLT Rules, 2016 , the recall of the Order dated 17.03.2025, by virtue of the restoration application, ought to have been accompanied by a delay condonation application since the same was preferred after sufficient long time, after the dismissal order. Hence, the Restoration Application No. 95/ND/2025 was rejected.
5. The Counsel for the appellant had come up with a case that, the view taken by the learned Tribunal that the application was required to be preferred with a delay and that remained unexplained, may not be acceptable for the reason being that, with the restoration application, being preferred on 03.10.2025, the same was preferred along with a delay condonation application, which was duly supported with an affidavit accompanied by a separate Court fees. But, however, on the date fixed, the recall application was listed, but the supporting delay condonation application, despite the same being filed along with the recall application, was not registered and resultantly was not listed before the learned Tribunal, when the Order of 09.10.2025 was passed. Consequently, the learned Tribunal has rejected the restoration application by an order of 09.10.2025.
6. So far as the aspect pertaining to the limitation is concerned, for the purposes of preferring of a recall application in the light of the provisions contained under Rule 48 , which is extracted hereunder. Though it contemplates filing of an application within 30 days from the date of dismissal. But it does not create a specific