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Judgment
(Hybrid Mode)
The Appellant, in a recall application, is seeking recall of the judgment dated 05.01.2026 that, was passed in Company Appeal (AT) (CH) (Ins) No. 656/2025, whereby the company appeal was closed by an order passed by this Appellate Tribunal on 05.01.2026. But due to inadvertence, the order which was supposed to be transcribed on the records of the Company Appeal (AT) (CH) (Ins) No. 657/2025 has been wrongly transcribed in Company Appeal (AT) (CH) (Ins) No. 656/2025.
The recall is accompanied with a Condone Delay application being IA No. 536/2026 seeking a condonation of 43 days of delay that has chanced in filing the recall application.
Having heard the Ld. Counsel for the parties and after going through the reasons given in the Condone Delay application, finding the same to be justified the delay of 43 days in filing the recall application is condoned, accordingly, IA No. 536/2026 would stand allowed.
Before we consider the recall application, some facts to justify the recall is required to be placed on the record:
I. In proceedings that were held before the Ld. NCLT Hyderabad bench, and as decided by the order dated 28.11.2025. The main order was passed on IA (IBC) No. 1480 of 2025, preferred in CP (IB) No. 199/7/HDB/2019, wherein by invoking provisions contained under Section 60 (5)(c) of the Code, the relief was sought to cancel and set aside the E-Auction dated 28.08.2025.
II. This application has been rejected by the impugned order of 28.11.2025, which is also under challenge in Company Appeal (AT) (CH) (Ins) No. 656/2025. It's in this company appeal that a wrong order has been transcribed of disposal of the appeal of 05.01.2026, which ought to have been actually transcribed in the order sheet of Company Appeal (AT) (CH) (Ins) No. 657/2025. Because of the fact, IA (IBC) No. 1480 of 2025, was seeking cancellation of E-Auction dated 28.08.2025, it remained pending before the Ld. Tribunal. The necessity arose for the Appellant to file IA (IBC) No. 1481 of 2025 in the company petition in the said IA that was filed, the prayer was made to the following effect:
"At the outset, it is observed that the Applicant has filed another Application, I.A. (IBC) 1481 of 2025, inter alia seeking a stay of all further proceedings pursuant to the E-Auction dated 28.08.2025 conducted by the Respondent/Liquidator, which is substantially connected to the present Application. In order to avoid multiplicity of proceedings, prevent conflicting findings, and secure the ends of justice, this Tribunal considers it just, proper, and expedient that I.A. No. 1480 of 2025 and I.A. (IBC) 1481 of 2025 be decided together by way of a common order"
In I.A. (IBC) 1481 of 2025, which is subject matter of consideration in Company Appeal (AT) (CH) (Ins) No. 657/2025. The issue was of staying the further proceedings in pursuance to the E-Auction of 28.08.2025.
Since I.A. (IBC) 1480 of 2025 seeking cancellation of E-Auction dated 28.08.2025 was rejected by the order dated 28.11.2025, which is now under challenge in Company Appeal (AT) (CH) (Ins) No. 656/2025.
We came to the conclusion that there would be no purpose solved to keep the Company Appeal (AT) (CH) (Ins) No. 657/2025 pending, which involves consideration of the impugned order of 28.11.2025, which was only praying for maintaining an interlocutory proceeding during the pendency of I.A. (IBC) 1480 of 2025, because once the principal lis has been decided, the interlocutory orders, or any orders passed on the interlocutory applications, they become an non-est under the principles of merger.
In that eventuality, and because of these circumstances, the order dated 05.01.2026, which closes the Company Appeal (AT) (CH) (Ins) No. 656/2025 would be read as to be a closure of Company Appeal (AT) (CH) (Ins) No. 657/2025 instead of Company Appeal (AT) (CH) (Ins) No. 656/2025, as wrongly transcribed in the order. Accordingly, the recall application IA No. 537/2026 would stand allowed. The order dated 05.01.2026 is modified to the following extent.
This order will be read as a disposal of the Company Appeal (AT) (CH) (Ins) No. 657/2025 and not Company Appeal (AT) (CH) (Ins) No. 656/2025 as wrongly transcribed in the impugned order.
Let the copy of this order be placed on the records of both the company appeals.
Put up on 03.07.2026.