NCLT Has Power To Recall Its Order: NCLAT

Brief Background

NCLT New Delhi vide its order dated 22.07.2021 closed the right to file reply of the Corporate Debtor. Appellant filed an application f for recalling the order dated 22.07.2021 by which right to file reply of the Corporate Debtor was closed.

NCLT vide its order dated 10.03.2022 dismissed the application on the ground that the tribunal is not vested with any power to recall or review its own order but also sufficient opportunities had already been granted to the Appellant to file reply.

Contentions Of Appellant

It was contended on behalf of the Appellant that the tribunal had the jurisdiction to recall its order under Rule 11 of NCLT Rules, 2016 and since, the tribunal has not decided any issue on merits, it has the power to recall its order.

Contentions Of Respondent

It was contended by the Respondent that the act and conduct of the Appellant is such that it does not warrant any relief as sufficient opportunities were granted to the Appellant to file reply which were not availed by the Appellant.

Decision By NCLAT

NCLAT held that there is a difference between recalling an order and review of an order where an issue is decided on merit by the Tribunal

"No doubt that the Adjudicating Authority has no jurisdiction to review its order after deciding a substantial issue but it has the jurisdiction to recall the order of the kind in dispute i.e., where the right to Reply was closed by an order on the ground that the opportunities granted were not availed."

Accordingly, NCLAT allowed the appeal and directed the Tribunal to consider the application on merits.

Case Details: Printland Digital (India) Pvt. Ltd. versus Nirmal Trading Company dated 30.05.2022

Counsel for Appellant: Mr. Sandeep Bisht, Mr. Yati Ranjan and Mr. Divyam Garg

Counsel for Respondent: Mr. Geetesh Meena

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