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Keywords – NCLAT, Recall judgments, Powers, Five-member Bench.

The National Company Law Appellate Tribunal (NCLAT) has clarified that it possesses the power to recall its judgments, asserting its inherent authority under Rule 11 of the NCLAT Rules, 2016. In a significant decision, a five-member bench of the NCLAT reversed the earlier judgments by three-member benches that denied the tribunal’s power to review or recall its judgments. The five-member bench emphasized that while the NCLAT lacks the power to review judgments, it does possess the authority to recall them if any procedural errors were committed during their delivery.

The case in question involved a Corporate Insolvency Resolution Process initiated by Union Bank of India against Amtek Auto Limited. The bank filed an application seeking the recall of an order passed by the NCLAT, and the respondents objected to its maintainability based on the previous judgments by the tribunal. However, the five-member bench concluded that those judgments did not establish the correct legal position. The NCLAT clarified that the power to recall a judgment can be exercised when procedural errors occur, such as the absence of necessary parties or instances of fraud in obtaining the judgment.

In this landmark ruling, the NCLAT reaffirmed its authority to recall judgments in cases of procedural errors. This decision clarifies the tribunal’s powers and reinforces its ability to rectify mistakes made during the delivery of judgments, ensuring procedural fairness and justice in its proceedings.

Source- https://www.barandbench.com/news/litigation/nclat-has-powers-recall-judgements-five-member-nclat-bench

Written by- Anjali Sudha, College name – Haridev law college, Kashipur., Semester- 6th sem an intern under Legal Vidhiya


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