NCLAT Has the Inherent Power to Recall Its Judgment Under Rule 11 of NCLAT Rules, 2016 | SC
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 27 September, 2023
Latest from Taxmann
Case Details: Union Bank of India v. Financial Creditors - [2023] 154 taxmann.com 203 (SC)
Judiciary and Counsel Details
-
- Sanjay Kishan Kaul & Sudhanshu Dhulia, JJ
- Gopal Jain, Sr. Adv., Alok Kumar, Ms Deepti Bhardwaj, Kunal Arora, Raghwi Rawat & Ayush Singhal, Advs. for the Appellant.
- N. Venkataraman, A.S.G., Sanjay Kapur, AOR, Surya Prakash, Arjun Bhatia, Rabin Majumder, Sumant Batra, Sanjay Bhatt & Ms Ruchi Gogal, Advs. for the Respondent.
Facts of the Case
In the instant case, the CIRP was initiated by a financial creditor under section 7 of the IBC against the corporate debtor. The Resolution plan (RP) submitted by the successful resolution applicant was approved by the Committee of Creditors (CoC) and the Adjudicating Authority (NCLT).
Subsequently, the NCLAT partly allowed the financial creditor’s appeal. The financial creditor filed an appeal to the Supreme Court, which was later dismissed by the Supreme Court as withdrawn, with the liberty to file a review application.
The NCLAT dismissed the review application as not maintainable under the IBC. The NCLAT had observed that the order passed by the NCLT or NCLAT could not be either reviewed or recalled.
NCLAT Held
Also, the NCLAT by the impugned order held that the power to review is not inherent upon the NCLAT but the power to recall its judgment is inherent as has been declared by rule 11 of the NCLAT Rules, 2016, which can exercised on sufficient grounds.
The Supreme Court, considering views taken by five judges bench of the NCLAT held that there was no reason for interfering with the impugned order of the NCLAT. Therefore, the appeal against the order of the NCLAT was to be dismissed.
List of Cases Reviewed
-
- Union Bank of India v. Dinkar [2023] 152 taxmann.com 106 (NCLAT) (para 3) affirmed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
