2024 (4) TMI 630 - AT - Insolvency and Bankruptcy

Recall application - power to recall/review - jurisdiction to review a judgment - HELD THAT - The jurisdiction of this Tribunal to recall an order has already been stated by the 5 Member Bench of this Tribunal in Union Bank of India Vs. Dinkar T. Venkatasubramanian Ors. 2023 (7) TMI 209 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI 5 Member Bench has held that the Tribunal has a power to recall however, it has no jurisdiction to review a judgment and the circumstances under which the Court can recall a judgment has also been noted. It was further held that the recall disguised as review cannot be entertained. By the present application, although its styled as recall but Appellant is virtually asking the Court to review its judgment which was delivered after hearing the Appellant - Present application is misconceived on the ground which are submitted in the application the order cannot be recalled - application for recall is dismissed. Admission of section 7 application - existence of debt and dispute or not - HELD THAT - Adjudicating Authority after hearing the parties noted that the only submission expressed by the Respondent is to pay the amount in instalment due to loss in their auto business - The Adjudicating Authority held that the Financial Creditor has proved the debt and default . It is well settled that when debt and default has been proved, Adjudicating Authority had to admit Section 7 application more so, looking to the pleadings of the Corporate Debtor before the Adjudicating Authority - thus, no ground has been made out to interfere in the impugned order admitting Section 7 application - appeal dismissed.

Summary

Issues involved: Application for recall of order and appeal against order admitting Section 7 application.

Recall application details:
- The application sought to recall an order dated 1.3.2024.
- Counsel argued that certain facts were missed in the judgment and requested deletion of the cost imposed.
- Referring to precedent, the Tribunal has the power to recall an order but not to review a judgment.
- The Tribunal clarified that the application for recall was essentially a request for a review, which cannot be entertained.
- The application for recall was dismissed.

Appeal against Section 7 application order:
- The appeal was filed against an order dated 20.12.2019 admitting the Section 7 application.
- The debt claimed was Rs. 80,00,000 with a default amount of Rs. 66,76,565 as of June 7, 2019.
- The Adjudicating Authority noted the Respondent's submission of payment difficulties due to business losses.
- The Adjudicating Authority found the debt and default were proven, leading to the admission of the Section 7 application.
- The Tribunal upheld the Adjudicating Authority's decision, stating no grounds existed to interfere with the order.

This judgment addressed the application for recall of an order and an appeal against the admission of a Section 7 application, emphasizing the distinction between recalling an order and reviewing a judgment based on established legal principles and factual considerations.