RCC E-Construct Pvt. Ltd. Vs J. Ramkumar (NCLAT Chennai)
NCLAT Chennai held that recall application under rule 11 of the NCLT Rules cannot be utilised as a camouflage to seek review of an order which has been passed on merits. Thus, company appeal lacks merits and hence dismissed.
Facts- The challenge as given by the Appellant in the instant Company Appeal, is an agitation of his grievances being aggrieved as against the impugned order dated 28.04.2025, that was rendered by Adjudicating Authority, which was preferred by the Appellant by invoking the provisions contained under Rule 11 of the NCLT Rules, for the purposes to seek a recall of the order that was passed on merits on 24.03.2025.
The said application for recall of the order 24.03.2025 has been dismissed, holding thereof that the recall will not lie, because for the purposes of preference of a recall application, exercising of an inherent power under Rule 11 of NCLT Rules, would not be open to be resorted to by a party, who had admittedly already been a party to the proceedings and had contested on merits and lost. Having not questioned the propriety of the principal order, the preference of a recall application cannot be taken as to be a substitute to seek a review of the order that, was passed on merits, which otherwise, under the provisions of the I & B Code, to be read with the NCLT Rules, is not a scope left open for reviewing of an order which has been admittedly passed on merits. Rule 11 as incorporated is in the shape of the savings clause, where the exercise of inherent powers is an exclusive prerogative vested with the Learned Tribunal, which has given an overriding effect to the other provisions, for the purposes of extension or exercise of powers by the Learned Tribunal to pass any such order, as may be necessary to meet the ends of Justice depending upon the facts and circumstances of each case. The intention of Rule 11 of NCLT Rules, is that it is a savings power, which has been vested with Learned Tribunal that, in any given situation of a stalemate, in the proceedings, where the Learned Tribunal feels that the I & B Code, or the rules framed thereunder are silent to deal with the particular peculiar aspect and which is inevitably required to be exercised for the purposes to meet the ends of Justice.
