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Sunil Inderlal Sharma vs M/S Arora Iron & Steel Rolling Mills Pvt. ...

National Company Law Appellate Tribunal11 August 2023Ashok Bhushan

Ratio decidendi

The rule this decision rests on

A party who was served with notice of the proceedings and consciously chose not to appear cannot later seek recall of the order on the ground that it was passed ex parte; such an application, where the applicant's own pleadings show he elected to leave the matter to be decided on its merits, constitutes an abuse of the process of the Court and is liable to be rejected.

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

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHII.A. No. 3603 of 2023 inCompany Appeal (AT) (Insolvency) No.1306 of 2022IN THE MATTER OF:

Sunil lnderlal Sharma ...Appellant

Versus

Arora Iron & Steel Rolling Mills Pvt. Ltd. & Anr. ...Respondents

Present: For Appellant: Mr. Arvind Kumar Gupta, Ms. Henna George, Advocates. For Respondents: Dr. Rajansh Thukral, Dr. Surekha Thukral and Mr. Sidharth Thukral, Advocates for Applicant in I.A. No. 3603 of 2023. Mr. Adhiraj Bhandari, Advocate for Horizon Metal Tech. Mr. Nishant Srivastava and Ms. Pooja Miglani, Advocates with Mr. Anil Ahuja, CA for IRP. ORDER

11.08.2023: I.A. No. 3603 of 2023: This is an application praying for

recall of the order passed by this Tribunal on 15.12.2022. In the application

following prayers have been made:

"a) It is prayed that the Ex-party order dated 15.12.2022 passed in Company Appeal (AT) (INS) N0.1306 OF 2022, may please be recalled as the same has been obtained by the Respondents mischievously and by playing fraud with this Hon'ble Court and by wrongly stating before this Hon'ble Court that they have settled the case with the applicant operational creditor by making payment of the entire amount.

b) It is further prayed that this Hon'ble Court may be pleased to pass such other or further orders as may be made out in the facts and circumstances of the case."

Cont'd.../ -2-

2. Although the Appellants allegation is that the order was

passed ex-parte, in Para 17 following averments have been made:

"17. That, subsequently, the Respondent/ appellant filed an appeal, and it was only upon service to the applicant that they became aware of undisclosed payment to the bank account of the applicant company. However, since the remaining amount was very miniscule and the cost of contesting appeal was high, the applicant did not appear before Hon'ble NCLAT and left it to be decided by this Hon'ble Court on its own merits as the account was never settled and it was not imaginable that the Respondent Appellant would conceal the true facts from this Hon'ble Court in the pleadings and later would use this order for filing application u/s 340 Cr.P.C."

3. When the Appellant was served with the notice and he consciously

chose not to appear before this Tribunal, it is not open for the Appellant to

seek recall of the order on the ground of ex-parte. This application is nothing

but abuse of process of the Court. We do not find any reason to entertain this

Application. Recall Application I.A. No. 3603 of 2023 is rejected.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

I.A. No. 3603 of 2023 in Company Appeal (AT) (Insolvency) No.1306 of 2022

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