# In the matter of Power Mech Projects Private Limited C.P (IB) No. 561-9-HDB-2018

> NCLT judgment dated 2018-12-06. Citation: TCN-2018-NCLT-00159. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 6 Dec 2018
- **Citation:** TCN-2018-NCLT-00159
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/power-mech-projects-private-limited-cp-ib-no-561-9-hdb-2018-b5e5e550

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by Damani Shipping Private Limited (Operational Creditor) against Power Mech Projects Private Limited (Corporate Debtor). The Operational Creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Corporate Debtor was initially treated as absent in an earlier order dated 26.10.2018. An application (IA No.669/2018) was filed for recalling the order treating the corporate debtor as absent. Subsequently, a joint memo was filed by both parties seeking withdrawal of the petition as the matter was compromised.

## Facts

Damani Shipping Private Limited, the Operational Creditor, filed a petition under Section 9 of the IBC against Power Mech Projects Private Limited, the Corporate Debtor. The Corporate Debtor was initially marked as absent in an order dated 2018-10-26. The Corporate Debtor filed an application (IA No.669/2018) to recall the order treating it as absent, citing inadvertence and lack of awareness of the company petition. The Operational Creditor did not object to the application. Both parties then filed a joint memo seeking to withdraw the petition, stating that they had reached a compromise. The petition had not yet been admitted, and no IRP had been appointed. The relevance of these facts is that they establish the procedural history of the case, the grounds for the

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## Issues and analysis

### Issue 1: Whether the court should recall its earlier …

**Ratio:** The court has the power to recall its own orders if sufficient cause is shown, and if the

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**Reasoning:** The court considered the averment that the corporate debtor's absence was due to

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**Interpretation:** This demonstrates the court's willingness to correct procedural errors and

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**Application:** The court applied this principle by recalling its earlier order, as the

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Damani Shipping…
- **Respondents:** Power Mech…

## Timeline

- **2018-10-26 — Order Treating…**: The court issued an order treating the corporate debtor, Power Mech Projects Private…
- **2018-12-06 — Order Recalling Order…**: The court recalled the order treating the corporate debtor as absent and allowed the…

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