# In the matter of Rajat Wires Pvt. Ltd. IB-622(ND)-2018

> NCLT judgment dated 2019-07-01. Citation: TCN-2019-NCLT-02724. The application seeks the recall of an order dated 2019-05-06 to restore the main company…

- **Court:** NCLT
- **Order date:** 1 Jul 2019
- **Citation:** TCN-2019-NCLT-02724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajat-wires-pvt-ltd-ib-622nd-2018-364f185b

## Summary

### Background

The application seeks the recall of an order dated 2019-05-06 to restore the main company petition to its original position. The applicant/petitioner's counsel argues that the inability pointed out in paragraph No. 3 caused non-prosecution of the petition. The Tribunal dismissed the main application for non-prosecution when the matter was called on 2019-05-06. Although the corporate debtor was granted an opportunity to file a reply, further time is sought on their behalf.

## Facts

M/s Sunflag Iron & Metal Co. Ltd. filed a petition against M/s Rajat Wires Pvt. Ltd. under Section 9 of the IBC, 2016. The petition was initially dismissed due to non-prosecution. The applicant/petitioner sought a recall of the dismissal order dated 2019-05-06. The corporate debtor was given an opportunity to file a reply, but requested more time. The Tribunal considered the application for recall and the request for additional time to file a reply.

## Issues and analysis

### Issue 1: Whether the application for recall of the …

**Ratio:** The Tribunal has the discretion to recall its orders to prevent injustice and ensure a

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**Reasoning:** The Tribunal considered the reasons for the initial dismissal and the applicant's

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**Interpretation:** The power to recall an order is generally exercised when there is an error

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**Application:** The Tribunal allowed the recall application subject to the payment of costs,

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** M/s Sunflag Iron…
- **Respondents:** M/s Rajat Wires…

## Timeline

- **2019-05-06 — Original Ord…**: Order was passed which is…
- **2019-07-01 — Order Del…**: Order delivered on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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