Section 9 Application are application which has to be decided in timely manner and exercise of discretion by the Adjudicating Authority can not be faulted – Baba Baidnath Spinners Pvt. Ltd. Vs. Textile Solutions – NCLAT New Delhi
Section 9 Application was filed by the Operational Creditor where he has relied on some documents dated 11.02.2020 and 16.03.2021. Application was filed for inspection and discovery asking for certain documents to be produced which was objected. The Adjudicating Authority has observed that if any documents are not filed the consequences will be faced by the Corporate Debtor, with these observations the Application was not entertained. NCLAT held that what is worth of the document has to be considered at the time of considering Section 9 Application and it is for the Operational Creditor to file relevant documents in support of his case and the Adjudicating Authority did not commit any error in rejecting the Application filed by the Appellant for discovery and inspection. Section 9 Application are application which has to be decided in timely manner and exercise of discretion by the Adjudicating Authority cannot be faulted.