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Shivang Prakashchandra Patel & Anr vs Bhavesh Devidas Narumalani

National Company Law Appellate Tribunal27 July 2020

Ratio decidendi

The rule this decision rests on

Where an original order of the Tribunal has been carried in appeal and the appellate decision has been rendered, the original order merges with the appellate order, and the Tribunal that passed the original order is not competent to entertain an application for its rectification under Section 420 of the Companies Act, 2013.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHICompany Appeal(AT) No. 107 of 2020IN THE MATTER OF:

Mr. Shivang Prakashchandra Patel & Anr. ...Appellants

Vs

Mr. Bhavesh Devidas Narumalani ....Respondent Present: For Appellants: Mr. Ritin Rai, Sr. Advocate along with Natasha Dhruman Shah, Advocate For Respondent: None.

ORDER

(Through Virtual Mode)

27.07.2020 Heard learned Counsel for the Appellants. The Appeal has

been filed as the I.A. filed by the Appellants for rectification what is stated to be

missing in the decision dated 15.03.2017 read with order dated 26.04.2017

passed by NCLT Ahmedabad Bench has been dismissed. Learned NCLT

Ahmedabad Bench has rejected the Application for reasons recorded and also

observed that since there was an Appeal it cannot be rectified as part. It does

appear that against the initial order of NCLT, Ahmedabad Bench, - copy of which

is at Annexure-A3, there was an Appeal before this Tribunal - copy of the order

of which is at Annexure-A4. When the Appeal was filed and has been decided,

the original order would naturally merge with the order of the Appellate Tribunal

and in such a situation, considering of Section 420 of the Companies Act, 2013,

fault cannot be found with the NCLT Ahmedabad Bench for not entertaining the

Application for rectification. We do not find NCLT Ahmedabad Bench erred in not

entertaining the Application. Learned Counsel for the Appellants has already

Company Appeal (AT) No. 107 of 2020 Page 1 of 2 been given liberty by NCLT Ahmedabad Bench to approach NCLAT Higher

Forum, for alleged rectification. If the Appellant wants to rectify the order passed

by this Tribunal in Appeal, it is for Appellant to see what Application would have

to be filed, which would naturally be considered as per law. We cannot forget

limitation for rectification and the fact that even Judgment of this Tribunal

appears to have been further upheld by Hon'ble Supreme Court in Civil Appeal

No. 2425 of 2018 dated 23.03.2018.

Appeal is disposed of accordingly.

[Justice A.I.S. Cheema] Member(Judicial)

[Justice Venugopal M.] Member (Judicial)

(Kanthi Narahari) Member(Technical)

Akc/Md

Company Appeal (AT) No. 107 of 2020 Page 2 of 2

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