NCLAT, also known as the National Company Law Appellate Tribunal, is a judicial body in India where companies or their related bodies can appeal against orders passed by NCLT. Although it lacks the powers of judicial review of an order that affects itself, it can remit an order under certain conditions. This article aims to delve into the exact process of recalling an order by the NCLAT and clarify its powers and limitations.
Does NCLAT Have the Power to Recall Its Judgment?
In this case, the NCLAT, as an adjudicating body, has reviewed numerous rulings of the Supreme Court to assess whether it triggered its own judgment reversal. Although in it does not hold the power to review a given decision, it can recall its verdicts for particular reasons. Order 11 empowers the NCLAT to recall its judgments.
Recently, a 5-member bench overruled the notion that the NCLT and NCLAT lack the power to recall their judgments. In the case of Union of India vs. Dinkar T Subramaniam, the bench clarified that while there is no jurisdiction available for the NCLT and NCLAT to review their orders and find errors, Order 11 of the NCLAT grants the power to recall an order under certain grounds and conditions. Recalling an order means providing the affected party with an equal opportunity if they were previously denied due to any fraudulent actions committed by the opposing party in the case.
The bench further emphasized that the provision for recalling orders helps reduce the number of appeals, particularly for less significant cases.
The bench considered the decision in the Aggarwal Coal House Private Limited case vs. K J L Private Limited. Although the rulings, in this case, did not allow the adjudicating authority to review or recall a specific order, the NCLAT overruled the previous judgments on the recall aspect. It stated that the NCLT and NCLAT can recall orders based on Order 11 of the NCLAT.
Additionally, the honourable NCLT decided in the case of Green Arch Private Limited vs. Ireo Limited. The appeal was accepted in this instance, and the NCLAT reconsidered the case. This case clearly shows that the tribunal can recall an order based on certain conditions.
The power of the NCLAT to recall its orders reduces the burden of appeals, benefiting not only society but also India’s legal system. This power streamlines the legal process and contributes to a more efficient system by minimising the number of appeals reaching the high court.