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NCLAT Refuses to Recall Dismissal Order: Says No Grounds for Reassessment [Read Order]

The Tribunal asserted that its inherent power to recall is not a substitute for appeal or review, and cannot be invoked simply because the party is dissatisfied with the outcome

NCLAT Refuses to Recall Dismissal Order: Says No Grounds for Reassessment [Read Order]
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The National Company Law Appellate Tribunal (NCLAT) has dismissed a series of recall applications filed by members of the Jain family, seeking to revisit an earlier order that had rejected their appeals against the resolution process of Rajesh Projects (India) Pvt. Ltd.

The appeals were initially dismissed on April 23, 2025, after detailed hearings in the insolvency proceedings of the corporate debtor. Unsatisfied with the outcome, the appellants returned to the Tribunal with a fresh set of applications seeking recall of that judgment, claiming the need for a “fair and comprehensive reassessment of the factual matrix.”

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But the NCLAT was not convinced. The applicants submitted that the April order caused “inconvenience” and merited reconsideration to ensure justice. They emphasized that the existing judgment overlooked certain key aspects, though the applications did not cite any concrete or new material evidence that was previously unavailable.

The appellants wanted a second shot at the same issue, without offering new facts or legal errors on record.

The Tribunal, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member), and Arun Baroka (Technical Member), categorically rejected the recall plea. It referred to the landmark Supreme Court judgment in Sri Budhia Swain v. Gopinath Deb, which clearly outlines the limited circumstances under which judicial orders can be recalled.

As per the Supreme Court’s view, review can be permitted, if there is discovery of new and important matter or evidence or some mistake or error apparent on the face of the record or any other sufficient reason.

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The NCLAT clarified that while it and the NCLT possess inherent powers to recall an order, they do not have the power to review a decision once rendered unless statutory provisions explicitly provide for it.

The NCLAT concluded that there was no mistake, no new evidence, and no legal oversight that would justify recalling the decision. As a result the Tribunal dismissed all the applications across the linked appeals filed by the jain family as each of these applications had sought the same relief, reopening a case that had already been conclusively decided.

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