Drafting Petition for acceptance of case in NCLT

NCLT is one of the youngest judicial forums and has onerous responsibility of deciding cases under IBC, 2016 and Companies Act, 2013. Here we are going to discuss some practical as well as legal insights for drafting error-free petitions and faster acceptance of petitions by NCLT Registry as well as NCLT.

1.??? Legal Paper: All applications are to be drafted on legal paper, even if the SC has allowed drafting on A-4 size paper.

?2.??? Margins:? Customise your margin setting to inner margin of 4 cm width on top, right margin of 2.5 and left margin of 5 cm.

?3.??? Heading: “Before the National Company Law Tribunal Bench at………(place)

?4.??? Relevant Case No, it is allocated to your case or simply write COMPANY APPLICATION NO……. OF 2023/ IA……

5.??? Relevant Section: - In the matter of the relevant section and Act under which the application is being filed.

6.??? In the matter of……. XYZ LTD -Applicant vs ABC Ltd Respondent

7.??? In the case of company in liquidation, write the name with “in liquidation.”

8.??? ?Till now, we have stated what is known as Cause Title. This cause title will remain same at the start of different parts of petition.

9.??? Index:

Index is first thing you should be careful. Otherwise, the Registry will make you humiliated as if you were “illiterate” in company law/IBC.

·??????? In the first page, after the cause title as above, draw a table and name it INDEX, with three columns:-(1) Sl. No. (II) Particulars (III) Page number.

·??????? As you build the application, fill the index in the last, so that any changes can be incorporated in it.

·??????? Signature: It can be signed by the advocate with writing as (Applicant through Counsel with advocate’s details like name, advocate reg. number, mobile number, email ID.

·??????? Place where the application is being filed and signed by the advocate

·??????? Date: The date when the advocate is filing the application.

·??????? The Index page is not numbered at this stage, so numbering will start from the next page of memos of parties.

10. Memo of Parties: ?Mention each party with name, complete address with PIN Code, mobile number, and email ID. This is to be signed as done for Index. The numbering will start from the starting page of Memo of Parties.

11. List of Events: Write the events in chronological order, starting with the oldest to the newest/last event, keeping the relevance and materiality of the events in the context of application being filed. The table starts with heading in the middle “List of Events”, with three columns (i) Sl. No. (ii) Date (iii) Particulars of events in brief.

12. Synopsis: ?With the heading Synopsis, you start with the brief background, building case from earlier events to filing of application. It may have happened that you have passed the required board/general meeting resolutions to approve the course of action, fulfilling the specific requirements of law, given required public advertisement, compliances before filing the application.? Or in case of IA (Interlocutory Application), you have some grievances and what to be heard or there may situations of caveat etc.

13. Weaving of Main Application: Here after the cause title, start with “Application under Section…. of Act/Code, seeking direction or approval”

?????·??????? Most respectfully Showeth:

·??????? Write the central point of your application; what you are seeking?

·??????? Details of applicant:? Company CIN, with certificate of incorporation, year, its objects and present business. In case of individual, his aadhar/PAN/identity proof.

?·??????? State jurisdiction of the court and limitation if any

·??????? Tell your story: start from the context and gradually build what you have to say.

·??????? While telling your story, only speak relevant and material facts.

·??????? Each fact to be stated in separate para.

·??????? Each major event is to be backed by a clear and legible document as Annexure No. Otherwise, the Registry will reject it even in case of boundary line of your page is blurred. All your logic will go in vain.

?14. Grounds: At this stage, you want to draw attention of the court to specific purpose of law, quote specific section, context of time (Covid-19 like situation), decisions in similar cases, superior courts ‘precedents, plead for natural justice, how you are aggrieved if your points are not taken in account.

15. Prayer: This is most crucial, if you do not ask for something, you will not be granted.? Secondly, so many times, the judge simply comes to the prayer page and ask what do you want. So, be specific, like allow the present application, claim some monetary benefits/damages, specific direction to the Respondent to do something. In the last, also write “pass any other order in the interest justice and equity” or “Pass such other orders as this Hon’ble Tribunal may deem fit and necessary”.

In the bottom, advocate will sign and give his details, place, and date.

?16. Affidavit: It must be supported with stamp paper of specific value. Please check the name of party of stamp paper. Affidavit must have cause title. It must be signed by the party. In case of outstation resident, please mention “presently at …… address”. This presently at address is the place where the notary has put the stamp. Legally, if in the bottom of affidavit, it is written “Verified at place……., that should be sufficient. But you are in the registry for getting your application through, so better avoid arguing with them. The petitioner needs to sign at Deponent’ place (twice). Get the affidavit notarised before submitting.

?17. Pagination: Once the documents, application and affidavit, power of attorney are ready, paginate them serially, and finally prepare your index sheet.

?18. In addition, there are prescribed formats under IBC and National Company Law Tribunal Rules for specific situations which needs to be followed.

?In case you have any concern and queries or need any support in compliance/NCLT drafting and cases, you may like to contact us.

?Abhinarayan Mishra, FCA, FCS; Managing Partner, KPAM & Associates, Chartered Accountants, Dwarka, New Delhi; +9910744992, [email protected]

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