Case Note & Summary
The appeal was filed by Tapasya Engineering Works Pvt. Ltd. against an order dated 08.07.2026, which had reserved the matter for orders without allowing the appellant to rectify defects in their application for recall of an earlier order dated 13.05.2026. The appellant contended that they were proceeded against ex-parte on 13.05.2026, and upon filing a recall application on 02.07.2026, the adjudicating authority did not intervene due to the absence of the application in the DMS. The appellant's counsel presented evidence of the application filed under Rule 11, which was noted to be in defect, and argued that the appellant was not given a fair opportunity to cure these defects. The Tribunal found merit in the appellant's submission, stating that the application for recall should be heard on its merits. Consequently, the order dated 08.07.2026 was set aside, and directions were issued for the appellant to remove the defects and for the application to be disposed of within a specified timeframe. The rights and contentions of the respondents were kept open, and pending applications were disposed of.
Headnote
A) Insolvency Law - Recall of Order - Right to be Heard - National Company Law Tribunal (NCLT) Rules, 2016, Rule 11 - The appellant's right to file a reply was closed, and the matter was reserved for orders without allowing the appellant to rectify defects in the recall application. The Tribunal held that the application for recall should be heard on merits and disposed of in accordance with law. (Paras 5-6)
Issue of Consideration
Whether the appellant was denied the opportunity to rectify defects in the recall application.
Final Decision
The order dated 08.07.2026 was set aside, and the appellant was directed to remove defects in their application and have it disposed of within four weeks.
Law Points
- Recall of order
- Right to be heard
- Defect in application
- Disposal of application
