P.A.Lakshminarayanan v. M.Annam

ORDER This application has been filed to set aside the exparte order of adjudication dated 27.08.2024 in I.P.No.17 of 2024.

¶2Heard both sides. Page2 of 4

¶3The applicant had been set ex parte as early as on 26.07.2024. Thereafter, when the matter was listed on 12.08.2024, a learned counsel had appeared on behalf of the respondent/applicant and sought time to either settle the matter or contest the proceedings, undertaking to file vakalat. However, noting that no vakalat had thereafter been filed and that the counsel, who had represented the Court on 12.08.2024, was not presented before this Court, this Court had proceeded to allow the Insolvency Petition on 27.08.2024. Thereafter, the present application to set aside the ex parte order had been filed.

¶4It is to be noted that pending the said application, the intra court appeal filed by the petitioner was also dismissed and was affirmed by the Hon'ble Apex Court. During the pendency of the Special Leave Petition before the Hon'ble Apex Court, the petitioner had been directed to deposit 50% of the decreetal amount, which he had complied with.

¶5However, it is to be noted that this Court by order dated 11.08.2025 had prima facie held that, for setting aside the ex parte order of adjudication passed by this Court, the entire decreetal amount would have to be deposited. On the said prima facie conclusion arrived by the Court, the learned counsel for the applicant had sought time to get instructions. When the matter was listed on

25.08.2025, the petitioner had attempted to resist the prima facie finding made Page3 of 4 by this Court. Again when the matter was taken up on 08.09.2025, it is to be noted that the intra court appeal was pending on the said date. Thereafter, both the intra court appeal as well as the Special Leave Petition filed by the petitioner came to be rejected.

¶6In such view of the matter, this Court is of the view that the ex parte order could be set aside, if the petitioner makes good the balance decreetal amount.

¶7Accordingly, this application stands allowed, on condition that the applicant deposits the entire decreetal amount (including interest), deducting the amount already deposited pursuant to the orders of the Hon'ble Apex Court, within a period of eight (8) weeks. 12-06-2026 Index: Yes/No Speaking/Non-speaking order kak APPLNoNo.o7oofo2025 K.KUMARESHoBABU,oJ. kak APPLNoNo.o7oofo2025 IN IPoNO.o17oOFo2024 12-06-2026 Page4oofo4

Page1 of 4 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12-06-2026 CORAM THE HON'BLE MR.JUSTICE K.KUMARESH BABU IN IP NO. 17 OF 2024 P.A.Lakshminarayanan ..Applicant(s) Vs 1. M.Annam 2. The Official Assignee, High Court, Madras – 600 104. ..Respondent(s) Judge's Summons filed under ORDER II Rule I of the Insolvency Rules, 1958 read with Section 7, 90 (1) of the Presidency Town Insolvency Act, 1909, to set aside the exparte order of adjudication dated 27.08.2024 in I.P.No.17 of 2024. For Applicant(s): Mr.Balagopal For Mr.S.Ravichandran For Respondent(s): Mr.K.V.Babu For M/s.B. Thiyagarajan