National Company Law Appellate Tribunal Allows Appellant in Recall Application Due to Misunderstanding. Dismissal of Recall Application Found to be Based on Hyper-Technical Grounds, Allowing Participation in Proceedings.

Tribunals: National Company Law Appellate Tribunal Bench: NEW DELHI
  • 3
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from an appeal filed by the Appellant, who was previously designated as Respondent No. 12 in an interim application. The Appellant sought to recall an order dated 07.11.2024, which had set the proceedings against him ex-parte. The Appellant contended that he had inadvertently filed an application to recall a different order dated 03.01.2025 instead of the intended order. The Learned Adjudicating Authority had dismissed the Appellant's application for recall on the grounds of considerable delay. The Appellant argued that the delay was not significant and was a result of a misunderstanding. The Tribunal noted that the Appellant had been given an opportunity to file an appropriate application for recall and that the dismissal of the application was based on an overly technical interpretation of the circumstances. The Tribunal ultimately allowed the appeal, set aside the impugned order, and permitted the Appellant to participate in the proceedings before the Learned Adjudicating Authority, directing that the reply be filed within five days. The Tribunal did not impose any costs.

Headnote

A) Company Law - Recall of Orders - Delay in Application - Code of Civil Procedure, 1908, Section 47 - The Appellant's application for recall of an order was dismissed on grounds of delay, but the court found that the delay was not considerable and was due to a misunderstanding regarding the order to be recalled. The court set aside the dismissal and allowed the Appellant to participate in the proceedings (Paras 12-15).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the delay in filing the application for recall of the order dated 07.11.2024 was considerable and justified the dismissal of the application.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal was allowed, the impugned order was set aside, and the order dated 07.11.2024 was recalled for the Appellant. The Appellant was permitted to file a reply within five days and participate in the proceedings.

Law Points

  • Recall of orders
  • ex-parte proceedings
  • delay in applications
  • procedural fairness
Subscribe to unlock Law Points Subscribe Now

Case Details

2026 LawText (NCLAT) (08) 29

Comp. App. (AT) (Ins) No. 1455 of 2026

2026-08-25

Justice Mohammad Faiz Alam Khan, Naresh Salecha

Mr. Abhishek Anand, Mr. Dhruv Pande, Mr. Karan Kohli

Sameer Gupta

Acreage Properties Pvt. Ltd.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against dismissal of application for recall of an order.

Remedy Sought

Appellant sought to set aside the dismissal of his application and participate in proceedings.

Filing Reason

The application was filed to recall an order that set the Appellant ex-parte.

Previous Decisions

The application was dismissed on grounds of delay.

Issues

Was the delay in filing the application for recall considerable? Did the Appellant have a valid reason for the misunderstanding regarding the order to be recalled?

Submissions/Arguments

The Appellant argued that the delay was not considerable and was due to a misunderstanding. The Respondent's position was not marked in the proceedings.

Ratio Decidendi

The Tribunal emphasized that procedural fairness must be upheld and that dismissals based on hyper-technical grounds should be avoided, especially when the party has been given an opportunity to rectify their application.

Judgment Excerpts

The issuance of any further notices to the Respondent is hereby dispensed with. The impugned order passed by the Learned Adjudicating Authority is hereby set aside. The reply may be filed by the Appellant/Respondent No. 11, within five days before the Learned Adjudicating Authority.

Procedural History

The Appellant was set ex-parte on 07.11.2024, and the proceedings continued on 03.01.2025. The Appellant filed I.A. No. 3496 of 2025 to recall an order dated 03.01.2025, which was disposed of on 19.02.2026, allowing the Appellant to file an appropriate application for recall of the order dated 07.11.2024.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 47
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Takes Suo Motu Cognizance of Custodial Death and Issues Criminal Contempt Notice to Police Officer. False and Fabricated Report by Superintendent of Police Under Article 32 and Section 302 IPC Led to Transfer of Investigation to CBI.
Related Judgement
Tribunals National Company Law Appellate Tribunal Dismisses Appeal in Insolvency Proceedings Due to Jurisdictional Error. NCLT, New Delhi Lacks Authority to Hear Case Against Personal Guarantor When CIRP of Corporate Debtor is Pending in Chandigarh.