Litigation Of Government Is Not Looked After As It Should Be: NCLAT New Delhi

The Bench was hearing the appeal filed by the Rajasthan Drugs and Pharmaceuticals against the order dated 11.11.2021 of NCLT, Jaipur where Corporate Insolvency Resolution Process was initiated against the Rajasthan Drugs and Pharmaceuticals Pvt. Ltd.

The Operational Creditor provided services to the Appellant and raised invoices amounting to Rs. 1.83 crores and the same remained unpaid by the Appellant and subsequently, the Operational Creditor issued a demand notice under Section 8 of the Code and thereafter filed the Section 9 Petition which was admitted by NCLT Jaipur

It was contended on behalf of the Appellant that since the Appellant is a Government Company, it should be spared from the insolvency. The Bench was amazed to hear such contention from the Appellant as it was observed by the bench that the Appellant being a government company did not choose to look after its interest before the NCLT as it hardly appeared in the Section 9 Proceedings and remained silent.

"We have been crying hoarse that the litigation of the Government is not being looked after the way it should have been and this is one of such examples."

NCLAT noted that no other ground is raised by Appellant and thereafter dismissed the appeal.

Case Detail: Rajasthan Drugs and Pharmaceuticals Ltd v. ATE Projects Pvt Ltd.

Counsel for Appellant: Mr. Manoj K Srivastwa

Counsel for Respondent: Mr. Alok Tripathi & Ms. Pooja Aggarwal

Click Here To Read/Download Order