# In the matter of Adisri Commercial Pvt. Ltd. vs. Reserve Bank of India & Ors.

> NCLAT judgment dated 2024-04-04. Citation: TCN-2024-NCLAT-00537. The case involves two appeals filed by the same Appellant, a shareholder of the Corporate…

- **Court:** NCLAT
- **Order date:** 4 Apr 2024
- **Citation:** TCN-2024-NCLAT-00537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/adisri-commercial-pvt-ltd-vs-reserve-bank-of-india-ors-98bb78d9

## Summary

### Background

The case involves two appeals filed by the same Appellant, a shareholder of the Corporate Debtor, against a common order dated 11.08.2023 passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, in IA (IB) No. 389/KB/2023 & IA (IB) No.391/KB/2023. The Appellant sought recall of an order dated 08.10.2021, which admitted 'SREI Infrastructure Finance Limited' (SIFL) and 'SREI Equipment Finance Limited' (SEFL) into CIRP. The applications for recall were rejected by the Adjudicating Authority, leading to the current appeals.

## Facts

SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL) are financial service providers registered with the Reserve Bank of India (RBI). On 01.10.2021, the RBI superseded the Board of Directors of SEFL and SIFL under Section 45-IE of the RBI Act, 1934, appointing Mr. Rajneesh Sharma as Administrator. The Appellant, a shareholder of SIFL, challenged this order before the Bombay High Court, which dismissed the petition on 07.10.2021. A Special Leave Petition was also dismissed by the Supreme Court. The RBI filed CP (IB) No. 295/KB/2021 against SIFL and CP (IB) No.294/KB/2021 against SEFL under Section 227 of the IBC. The Adjudicating Authority admitted these applications on 08.10.2021 and declared a moratorium. The Appellant challenged this

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in rejecting the recall applications filed by …

**Ratio:** The power to recall a judgment is inherent in the Tribunal, but it is distinct from the

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**Reasoning:** The Tribunal reasoned that the Appellant was essentially seeking a review of the judgment

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**Interpretation:** The interpretation of the power to recall is limited to correcting procedural

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**Application:** The Tribunal applied this principle to the facts, finding that there was no

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Adisri Commercial…
- **Respondents:** SREI Infrastructur…; Reserve Bank of…

## Timeline

- **2021-10-01 — RBI Supersedes Board of…**: RBI superseded the Board of Directors of SEFL and SIFL under Section 45-IE of the RBI…
- **2021-10-07 — Bombay High Court…**: The Appellant's challenge to the RBI's order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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