NCLAT reduces cost from Rs.2.5 lakhs to Rs 25,000 for serving the ends of justice, ET LegalWorld | Court Practice News

Recently, NCLAT has held that for serving the ends of justice, the cost of Rs. 2.5 Lakhs imposed by the adjudicating authority can be reduced to Rs. 25,000.

The facts of the matter were that the adjudicating authority on 10.01.2024 granted one week to the personal guarantor to file a response as a final opportunity. However, the appellant filed a response on 24.01.2024 on which the adjudicating authority imposed a cost of Rs.2.5 lakhs on the personal guarantors.

The appellant contended that they were also carrying a physical copy of the Reply on the date of the hearing and were also ready.

The NCLAT considered the facts of the present case, especially that there was delay of only 6 days in filing the reply. The bench of Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), & Arun Baroka (Technical Member) was of the view that imposition of cost of Rs.2.5 lakhs is excessive.

Thus, the ends of justice will be served in reducing the cost to Rs.25,000/- each.

Written by Kumar Aditya (

  • Published On Feb 12, 2024 at 12:25 AM IST

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