# In the matter of Precision Engineers & Febricators Pvt. Ltd.

> NCLT judgment dated 2018-10-22. Citation: TCN-2018-NCLT-00524. The case involves an application filed by Union Bank of India seeking the recall of an order…

- **Court:** NCLT
- **Order date:** 22 Oct 2018
- **Citation:** TCN-2018-NCLT-00524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/precision-engineers-febricators-pvt-ltd-b911e66c

## Summary

### Background

The case involves an application filed by Union Bank of India seeking the recall of an order admitting a Corporate Insolvency Resolution Process (CIRP) against Precision Engineers & Fabricators Private Limited. The CIRP was initiated based on an application by Berger Paints India Limited. Union Bank argued that the Resolution Applicant suppressed material facts regarding pending winding-up proceedings before the High Court at Calcutta. The Resolution Plan was approved, but subsequent non-compliance with its terms led to the application for recall. The Corporate Debtor objected, citing a lack of power to recall the admission order. Two financial creditors, Axis Bank and L&T Finance Limited, also filed applications for liquidation due to non-compliance with the

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## Facts

Berger Paints India Limited initiated CIRP against Precision Engineers & Fabricators Private Limited. The CIRP was admitted, and a Resolution Plan was approved. Union Bank of India filed an application to recall the admission order, alleging suppression of facts regarding pending winding-up proceedings before the High Court at Calcutta. The Resolution Applicant allegedly did not disclose the pendency of C.P. No.487 of 2016 before the Hon'ble High Court at Calcutta. Axis Bank and L&T Finance Limited filed applications for liquidation due to non-compliance with the Resolution Plan. The Corporate Debtor allegedly failed to make payments as per the Resolution Plan, including payments to Axis Bank and L&T Finance Limited. Phoenix ARC Private Ltd. allegedly

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the power to recall an order of admission passed under …

**Ratio:** The Adjudicating Authority does not have the power to review or recall an order of

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**Reasoning:** The court relied on precedents such as 'Amod Amladi' and 'Lokhandwala Kataria

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**Interpretation:** The interpretation of the law is that the Adjudicating Authority's powers are

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**Application:** In this case, since there is no specific provision in the Insolvency &

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## Parties

- **Judges:** Jinan…
- **Appellants:** Union Bank of…
- **Respondents:** Precision…

## Timeline

- **2017-04-04 — Admission of CIRP…**: The application of the operational creditor, Berger Paints India Limited, was admitted,…
- **2018-02-01 — Approval of Resolution…**: The Resolution Plan submitted by Mr. Gurdeep Singh Sahni was approved by the Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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