NCLT Must Give Reasons for Reliefs Not Granted: NCLAT Remands Katariya Infraproject Matter

The National Company Law Appellate Tribunal (NCLAT) remanded a matter involving Katariya Infraprojects back to the NCLT, citing a lack of reasons provided for the denial of certain reliefs sought by the applicant. The NCLAT observed that judicial and quasi-judicial bodies are mandated to issue reasoned orders, especially under the Insolvency and Bankruptcy Code (IBC), where decisions have significant commercial consequences. The Tribunal found the NCLT’s order to be non-speaking and deficient in rationale, particularly for the claims that were not admitted. The NCLAT emphasized that transparency and accountability in insolvency proceedings necessitate well-reasoned orders to ensure that parties can effectively seek appellate remedies.