NCLAT dismisses recall pleas disguised as fraud challenges, imposes ₹7 lakh in costs.
The National Company Law Appellate Tribunal (NCLAT), Delhi, rejected applications seeking recall of an order in an insolvency professional’s disciplinary case, holding that unproved allegations of affidavit fraud cannot circumvent the review mechanism.
The tribunal observed that the pleas were an abuse of process, attempting to file review petitions in the guise of recall applications. In response, aggregate costs of ₹7 lakh were imposed on the appellants.
The principle is well settled—fraud allegations must be strictly pleaded and proved to warrant exceptional relief.
This decision underscores procedural discipline in appellate practice. Counsel must resort to formal review or appeal mechanisms rather than creative remedies to challenge orders.
