The NCLAT Delhi approved the submission of an additional affidavit in revived IBC proceedings, underscoring that adherence to procedural rules must not undermine the principle of natural justice.
NCLAT: Procedural Rules Cannot Defeat Natural Justice in IBC Proceedings
The National Company Law Appellate Tribunal (NCLAT), Delhi, recently delivered a ruling affirming that procedural rules should not infringe upon the principles of natural justice in the context of Insolvency and Bankruptcy Code (IBC) proceedings. The Tribunal allowed the introduction of an additional affidavit in the ongoing Section 7 proceedings.
This decision underscores the judiciary's commitment to ensuring fair play and the protection of rights during insolvency matters by allowing necessary evidence despite procedural constraints. The ruling promotes the fundamental principle that parties must have the ability to present their cases comprehensively.
Practitioners should take note of this perspective, as it reinforces the need for flexibility in applying procedural rules to uphold the fairness of proceedings, especially where substantial rights are at stake.
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