Review Application Dismissed for Companies Act Non-Compliance

The Review Application seeking modification of an order dated 21.12.2021 in TCP/26/KOB/2019 was dismissed by the Tribunal. The Petitioner's contentions regarding alleged non-compliance with certain sections of the Companies Act 2013 were not considered grounds for review. The Tribunal emphasized that the power of review is limited to correcting mistakes apparent from the record and cannot be used for reevaluation of facts or law. As the order had become conclusive and final, the Review Application was dismissed without costs on March 11, 2022.

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Issues:
Review and modification of an order dated 21.12.2021 in TCP/26/KOB/2019.

Analysis:
The Review Application was filed seeking to modify the order dated 21.12.2021 in TCP/26/KOB/2019. The case involved the dismissal of TCP/26/KOB/2019 by the Tribunal, where the Petitioner alleged certain observations contrary to the facts and documents on record. The 1st Respondent Company, a media company, was promoted by the Petitioner along with the 3rd Respondent (investor) and operated the cable TV Channel 'Goodness TV.' The Petitioner accused the 2nd and 4th Respondents of failing to comply with Sections 89 and 184 of the Companies Act 2013, attempting to oppress the Petitioner. The Petitioner requested the Tribunal to review and modify the order based on these contentions.

The Respondents argued that the Review Application was not maintainable as the Company Petition was dismissed on merits. The Tribunal, after hearing both parties, examined Rule 154 of the NCLT Rules, 2016, and Section 420(2) of the Companies Act, 2013. These provisions allow for rectification of clerical or arithmetical mistakes or errors apparent from the record, but not for substituting a view made during the decision-making process. The Tribunal found no error apparent on the face of the record warranting correction in the order.

Referring to legal precedents, the Tribunal emphasized that the power of review is limited to correcting mistakes apparent from the record, not to reevaluate facts or law. The Tribunal cited cases where it was established that a review is not an appeal in disguise and cannot be used for a fresh hearing, re-argument, or correction of an erroneous view taken earlier. The Tribunal concluded that in the absence of specific provisions for review or recall, an order or judgment passed by the Adjudicating Authority cannot be reviewed or recalled.

Based on these principles, the Tribunal dismissed the Review Application as the order passed in the Company Petition had become conclusive, final, and binding. The Tribunal held that the Review Application could not be entertained in this case, and accordingly, Review Application/01/KOB/2022 was dismissed without costs on the 11th day of March, 2022.

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