# In the matter of Shirdi Industries Limited

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03048. Mars Art Studio filed MA 718/2020 in the Corporate Insolvency Resolution Process (CIRP) of…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirdi-industries-limited-5a2cece5

## Summary

### Background

Mars Art Studio filed MA 718/2020 in the Corporate Insolvency Resolution Process (CIRP) of Shirdi Industries Limited, seeking a declaration that the order dated December 12, 2017, approving the Resolution Plan, is not binding on them. The applicant had previously filed a petition before the Micro and Small Enterprises Facilitation Council for recovery of Rs. 2,87,500. An award was passed in favor of the applicant, and they sought execution of the award. The corporate debtor argued that the applicant's claim should be dealt with according to the approved resolution plan.

## Facts

Mars Art Studio, the applicant, filed MA 718/2020 in the CIRP of Shirdi Industries Limited, the corporate debtor. The applicant sought a declaration that the order approving the resolution plan is not binding on them. The applicant had previously filed a petition before the Micro and Small Enterprises Facilitation Council for recovery of Rs. 2,87,500. An award was passed in favor of the applicant on 03rd March 2018. The corporate debtor filed an affidavit denying the claim and counter-claimed for Rs. 50,00,000. The applicant took out an execution application. The Corporate Debtor communicated that the dues of operational creditors as on 18/05/2017 shall be paid @ 15% and this amount shall be payable in 8 installments commencing from June 2022 till March 2024. The

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to recall its order dated 12.12.2017 approving the resolution …

**Ratio:** The Tribunal has limited power to recall its order, and such power does not include the

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**Reasoning:** The Tribunal relied on the NCLAT's decision, which stated that the power of recall is not

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**Interpretation:** The power to recall a judgment is distinct from the power to review a judgment.

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**Application:** The Tribunal found no grounds for recall based on procedural errors or fraud.

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Mars Art…
- **Respondents:** Shirdi Industries…
- **Advocates:** Sneha Ag…

## Timeline

- **2016-03-04 — Petition…**: The Applicant filed Petition bearing No.33 of 2016 before the Micro and Small Enterprises…
- **2017-05-18 — Admission in…**: Corporate Debtor…

## 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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