NCLT Mumbai Imposes ₹1 Lakh Costs On Corporate Debtor For 11 Month Delay In Filing Additional Documents
The National Company Law Tribunal (NCLT), Mumbai on 20 August imposed Rs. 1 lakh costs on RAB Enterprises (India) Pvt Ltd for an approximately 11-month delay in seeking to place additional documents on record in an insolvency petition filed by Awfis Space Solutions Ltd.
A Bench of Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati allowed the company to place the additional documents on record but directed it to deposit Rs. 1 lakh in the Prime Minister's National Relief Fund within seven days. It observed:
"Further, though the Applicant has sought to explain the delay by referring to changes in its secretarial and compliance personnel and its involvement in proceedings under the Prevention of Money Laundering Act, 2002 (PMLA), no specific particulars/details have been furnished regarding the period for which the personnel were unavailable or the specific difficulties caused by such proceedings. In the circumstances, while permitting the documents to be taken on record, we deem it appropriate to impose cost of Rs. 1,00,000/- (Rupees One Lakhs only) on the Applicant, to be deposited in the Prime Minister's National Relief Fund within seven days from the date of this Order."
Awfis Space Solutions Ltd filed a Section 9 insolvency petition against RAB Enterprises on 19 August 2024. RAB filed its reply on 13 February 2025 but sought to introduce the additional documents only on 10 January 2026.
The documents included a supplementary reply dated 30 August 2024, GST records concerning a June 2023 invoice, and letters dated 5 January, 17 January and 1 February 2024. RAB argued that these documents supported its case that a pre-existing dispute existed before the statutory demand notice dated 7 July 2024.
RAB attributed the delay to changes in its secretarial and compliance personnel and its involvement in proceedings under the PMLA.
Awfis opposed the application, arguing that the documents were already within RAB's knowledge and possession. It also pointed out that the Tribunal had rejected a similar request on 5 December 2025 and alleged that RAB had filed the application to delay the insolvency proceedings.
The Tribunal held that Rule 55 of the NCLT Rules permits subsequent pleadings with the Tribunal's leave. It also held that additional documents can be taken on record before final adjudication.
It found that the documents could have a bearing on whether a pre-existing dispute existed before the statutory demand notice and therefore permitted RAB to place them on record.
However, the Bench found that RAB had not provided sufficient particulars to justify the delay. Considering the approximately 11-month delay and the time-bound nature of proceedings under the Insolvency and Bankruptcy Code, 2016, it imposed Rs. 1 lakh costs, payable to the Prime Minister's National Relief Fund within seven days.
Accordingly, the Bench allowed RAB's application.
For Applicant: Adv. Satyajit Sarna, Adv. Aman Goyal
For Respondent: Sr. Adv. Zal Andhyarujina a/w. Anup Dagunta, Adv. Akanksha Agarwal, Adv. Dahika Hemani and Adv. Rishad Mehta i/b Jhangiani Narula and Associates