Case Title: Printland Digital (India) Pvt. Ltd. versus Nirmal Trading Company
The NCLAT in the abovementioned case observed that the National Company Law Tribunal has power to recall its order of closing the right to file a reply.
The brief facts of the case are that the Counsel for Appellant had filed an application on 16.09.2021 for recalling of the order dated 22.07.2021 by which its right to file reply as Corporate Debtor was closed. However, the same was dismissed by the impugned order, inter alia, on the ground that not only 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 the reply which was not availed.
The Appellant took a stand that the Tribunal had jurisdiction to recall its order in terms of Rule 11 of NCLT Rules, 2016 because it had not decided any substantial issue on merits. On the other hand, Counsel for Respondent had argued that the act and conduct of the present Appellant are such that it does not allow it to seek interference by this Court because sufficient opportunities were granted by the Adjudicating Authority to file the reply which has deliberately not been chosen to avail and therefore it is just a ploy on part of the Appellant to delay the decision on application pending before the Adjudicating Authority.
The Hon’ble Tribunal observed thus:
“We have heard Counsel for the parties and perused the record. There is a difference between recalling of an order and review on merits of the issue decided by the Adjudicating Authority. 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. In this regard, we rely upon a decision of this Tribunal rendered in the case of CA (AT) (Ins) No. 271 of 2022 in which it has been held that if there is an adjudication by the Adjudicating Authority on merits of the issues then it would not have the jurisdiction to review its order but insofar as the dispute with regard to right to file the Reply which is closed by an order, it certainly has the jurisdiction to recall it in terms of the Rule 11 of NCLT Rules, 2016.”