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        Companies Law

        2019 (8) TMI 270 - AT - Companies Law

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        Rectification power is barred after appeal is filed, and omitted relief is treated as refused rather than clerical error. A tribunal's rectification power is limited to correcting a mistake apparent from the record within the prescribed period, and it cannot be used once an ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Rectification power is barred after appeal is filed, and omitted relief is treated as refused rather than clerical error.

                          A tribunal's rectification power is limited to correcting a mistake apparent from the record within the prescribed period, and it cannot be used once an appeal has already been preferred against the order sought to be amended. In this context, the omission to expressly grant consequential dividend relief was not a clerical error capable of rectification, because a relief claimed but not expressly awarded is treated as refused. The commentary therefore confirms that the rectification request was not maintainable and that the claimed consequential relief could not be reopened through amendment of the earlier order.




                          Issues: Whether the Tribunal could rectify its earlier order to grant consequential dividend relief when an appeal had already been preferred against that order, and whether omission to expressly grant the relief amounted to an error warranting rectification.

                          Analysis: The statutory power to amend an order is confined to rectifying a mistake apparent from the record within the prescribed period, but the proviso to Section 420(2) of the Companies Act, 2013 bars amendment of any order against which an appeal has been preferred. The earlier order had already been carried in appeal, and the applicant had not challenged the omission to grant consequential relief at the appropriate stage. The principle reflected in Explanation V to Section 11 of the Code of Civil Procedure, 1908 supports the view that a relief claimed but not expressly granted is treated as refused. On that basis, the omission could not be reopened by rectification.

                          Conclusion: The rectification application was not maintainable and its dismissal was .

                          Final Conclusion: The appeal failed and the dismissal of the rectification request was sustained, leaving no basis for grant of the claimed consequential relief.

                          Ratio Decidendi: A tribunal cannot amend its order under the rectification power once an appeal has been preferred against that order, and a relief not expressly granted is treated as refused rather than as a clerical omission.


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