Recall under Rule 49(2) requires non-service or sufficient cause; mere counsel appearance without authority is insufficient.

Rule 49(2) of the National Company Law Tribunal Rules, 2016 permits recall of an ex parte proceeding only if notice was not duly served or the respondent was prevented by sufficient cause from appearing. As notice of the section 7 proceedings had been served on the corporate debtor, and counsel's appearance without a vakalatnama did not establish sufficient cause, the recall request could not be maintained. The admission order had also been passed on merits after consideration of debt and default, and there was no effective challenge to those findings. The rejection of recall was therefore upheld.

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Issues: Whether the recall application under Rule 49(2) of the National Company Law Tribunal Rules, 2016 was maintainable on the ground of alleged denial of opportunity and whether the order admitting the section 7 application called for interference.

Analysis: Rule 49(2) permits setting aside an ex parte hearing only where notice was not duly served or the respondent was prevented by sufficient cause from appearing. Notice of the section 7 proceedings had been served on the corporate debtor, and the appearance of counsel without filing vakalatnama did not establish sufficient cause preventing appearance. The original admission order also proceeded on merits after considering debt and default, and the appellant did not effectively contest the merits before the appellate forum. The Tribunal therefore found no legal basis to invoke Rule 49(2) for recall.

Conclusion: The recall application was not maintainable and the rejection of the application was upheld.

Final Conclusion: The appeal failed, and the order rejecting recall of the admission order remained undisturbed.

Ratio Decidendi: Rule 49(2) can be invoked only on non-service of notice or proof of sufficient cause preventing appearance; mere appearance of counsel without authority or failure to file a reply does not justify setting aside a proceeding that was otherwise taken on merits.

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