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        Insolvency and Bankruptcy

        2022 (6) TMI 208 - Tri - Insolvency and Bankruptcy

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        Ex parte order relief under NCLT Rules does not extend to recall or review of a final disposal order. Rule 49(2) of the National Company Law Tribunal Rules, 2016 permits the Tribunal to set aside an ex parte order, but it does not authorise recall or ...
                          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.

                              Ex parte order relief under NCLT Rules does not extend to recall or review of a final disposal order.

                              Rule 49(2) of the National Company Law Tribunal Rules, 2016 permits the Tribunal to set aside an ex parte order, but it does not authorise recall or review of a final order after disposal. Where an application seeks both setting aside of an ex parte order and recall of the final disposal order, the request exceeds the Tribunal's jurisdiction to the extent it targets the final order. The resulting effect is that such recall relief is not maintainable under the Rules and must be rejected to that extent.




                              Issues: Whether the Tribunal had power under Rule 49(2) of the National Company Law Tribunal Rules, 2016 to recall its final order and whether the application seeking recall and setting aside of the ex parte order was maintainable.

                              Analysis: Rule 49(2) empowers the Tribunal to set aside an ex parte order, but it does not confer any power to recall or review a final order once disposed of. The application sought not only setting aside of the ex parte order but also recall of the final disposal order, which fell outside the Tribunal's jurisdiction under the Rules.

                              Conclusion: The application was not maintainable to the extent it sought recall of the final order, and the request for relief was rejected.


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                              ActsIncome Tax
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