NCLAT Has the Inherent Power to Recall Its Judgment Under Rule 11 of NCLAT Rules, 2016 | SC
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- Last Updated on 27 September, 2023
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Case Details: Union Bank of India v. Financial Creditors - [2023] 154 taxmann.com 203 (SC)
Judiciary and Counsel Details
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- 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 The financial creditor filed an appeal to the Supreme Court, which was later dismissed by the Supreme Court as withdrawn, with the liberty to file a review application.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
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- Union Bank of India v. Dinkar [2023] 152 taxmann.com 106 (NCLAT) (para 3) affirmed.
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