Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: 03.08.2026

Case Overview

This appeal was filed by Tapasya Engineering Works Pvt. Ltd. against an order dated 08.07.2026 passed by the National Company Law Tribunal (NCLT), Mumbai in Company Appeal (AT) (Insolvency) No. 1382 of 2026. The appellant challenged the NCLT's decision to reserve the matter for orders without considering their application for recall of an earlier ex-parte order dated 13.05.2026. The background reveals that the appellant's right to file a reply was closed, and they were proceeded ex-parte on 13.05.2026. Subsequently, on 02.07.2026, the appellant filed an application under Rule 11 for recall of the ex-parte order and shared an e-filing number with the adjudicating authority. However, since this application was not reflected in the Document Management System (DMS) due to technical defects, the NCLT did not intervene and reserved the matter for orders on 08.07.2026.

The appellant's counsel presented Annexure A-16 as proof of filing the recall application on 02.07.2026, though its status showed it was "in defect." The appellant contended they could not cure the defect within the stipulated 5-day period and were not given an opportunity to remove defects or place the recall application on record before the matter was taken up on 08.07.2026.

Final Outcome

The NCLAT, after examining Annexure A-16 and hearing submissions, set aside the NCLT's order dated 08.07.2026. The appellate tribunal directed that the appellant's application for recall of the 13.05.2026 order be heard on merits and disposed of in accordance with law. Specific directions were issued: (1) The appellant must remove defects in the application within one week from the order date (03.08.2026); (2) The Registry of NCLT Mumbai must allow defect removal so the application can be placed before the adjudicating authority; (3) The NCLT must dispose of the application within four weeks from the order date. All rights and contentions of the respondent (Eris Therapeutics Ltd.) were kept open, and any pending applications were disposed of.

Topics: Insolvency Proceedings, Legal Procedure