# In the matter of Shirdi Industries Limited

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03054. The case involves an application (M.A. 718/2020) filed by Mars Art Studio in the Corporate…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirdi-industries-limited-e28b233a

## Summary

### Background

The case involves an application (M.A. 718/2020) filed by Mars Art Studio in the Corporate Insolvency Resolution Process (CIRP) of Shirdi Industries Limited, seeking a declaration that the order dated December 12, 2017, which approved the Resolution Plan, is not binding on the applicant. The applicant claims entitlement to 15% of the claim amount. The applicant had previously filed a petition before the Micro and Small Enterprises Facilitation Council for recovery of Rs.2,87,500/-. The Corporate Debtor denied the claim and filed a counter-claim for Rs.50,00,000/-. An arbitrator passed an award against the Corporate Debtor, directing them to pay Rs.2,87,500/- with interest. The Corporate Debtor then took out an Interim Application before the High Court for setting aside

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## Facts

Mars Art Studio filed MA 718/2020 in the CIRP of Shirdi Industries Limited, seeking a declaration that the order dated 12th December 2017 approving the resolution plan is not binding on them, claiming entitlement to 15% of the claim amount. Mars Art Studio had earlier filed a petition on 4th March 2016 before the Micro and Small Enterprises Facilitation Council for recovery of Rs.2,87,500/-. Shirdi Industries Limited filed an affidavit denying the claim and counter-claimed for Rs.50,00,000/-. On 3rd March 2018, an arbitrator awarded Rs.2,87,500/- with interest to Mars Art Studio. Shirdi Industries Limited sent a letter on 21st May 2018, enclosing a letter dated 2nd May 2018, to Mars Art Studio. Mars Art Studio requested a copy of the order dated 12th December 2017.

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to recall its order dated 12.12.2017 on the grounds stated in …

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

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**Reasoning:** The Tribunal considered Section 32 of the Insolvency and Bankruptcy Code, 2016, which

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**Interpretation:** The legal issue revolves around the scope of the Tribunal's power to recall its

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**Application:** In this specific case, the Tribunal determined that the grounds stated in the

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## Parties

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

## Timeline

- **2016-03-04 — Petition…**: Applicant filed Petition bearing No.33 of 2016 before the Micro and Small Enterprises…
- **2017-05-18 — CIRP Admi…**: 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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