# In the matter of Santha Spinning Mills Pvt. Ltd. IA-1035-IB-2020 in CP-1397-2018

> NCLT judgment dated 2021-07-22. Citation: TCN-2021-NCLT-01665. The application IA/1035/IB/2020 was filed in CP/1397/2018. CP/1397/2018 was dismissed by the…

- **Court:** NCLT
- **Order date:** 22 Jul 2021
- **Citation:** TCN-2021-NCLT-01665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/santha-spinning-mills-pvt-ltd-ia-1035-ib-2020-in-cp-1397-2018-b5a607f1

## Summary

### Background

The application IA/1035/IB/2020 was filed in CP/1397/2018. CP/1397/2018 was dismissed by the Adjudicating Authority on 2019-03-14. Aggrieved by this order, the Applicant filed an appeal before the Hon'ble NCLAT in Appeal No.877 of 2019. By order dated 2019-08-29, the Applicant sought for withdrawal of this appeal before the Hon'ble NCLAT with liberty to appear before the Adjudicating Authority for clarification of the order dated 2019-03-06. The Hon'ble Appellate Court permitted the withdrawal of the appeal with liberty.

## Facts

Asian Wind Energy Pvt Ltd filed an application (IA/1035/IB/2020) in connection with CP/1397/2018. The CP/1397/2018 was previously dismissed by the Adjudicating Authority on 2019-03-14. Asian Wind Energy Pvt Ltd then filed an appeal (No.877 of 2019) before the NCLAT, which was later withdrawn with liberty to appear before the Adjudicating Authority for clarification of the order dated 2019-03-06. The applicant sought clarification about the conclusion of the debt. The court noted that for applications under Section 7 or 9 of IBC, the Adjudicating Authority only arrives at a prima facie view of the debt, especially considering the threshold of Rs. 1 Crore after 2020-03-24.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can recall or review its own orders as per the Insolvency & …

**Ratio:** The Adjudicating Authority cannot recall or review its orders as per the Insolvency &

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**Reasoning:** It is a well-settled principle of law that the Adjudicating Authority cannot recall or

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**Interpretation:** The principle of law prevents the Adjudicating Authority from revisiting or

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**Application:** The court applied this principle by refusing to review its previous order

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Asian wind Energy…
- **Respondents:** Santha Spinning…

## Timeline

- **2019-03-14 — Dismissal of CP/1397/201…**: CP/1397/2018 was dismissed by…
- **2019-08-29 — Withdrawal of…**: The Applicant sought for withdrawal of the appeal before the Hon'ble NCLAT with liberty…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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