Whether NCLT has power and jurisdiction to delete a sentence from the Resolution Plan Approval Order pursuant to an application filed under Rule 154 of the National Company Law Rules, 2016 (NCLT Rules) – Mr. Bhavesh Rathod Erstwhile RP/Member of Monitoring Committee of IGOPL Offshore Pvt. Ltd. – NCLT Mumbai Bench
In this case, Erstwhile RP filed IA under NCLT Rule 154 seeking to bring more clarity in Resolution Plan Approval Order by deleting a sentence- “The relief which is not expressly granted above shall not be construed as granted”.
NCLT Mumbai Bench held that:
(i) A bare reading of Rule 154 of NCLT Rules makes it clear that the power of Tribunal under the said provision is limited to rectification of clerical and arithmetical errors arising from any accidental slip or omission. The scope and ambit of the above Rule cannot be extended to review the terms of the Plan Approval Order to substitute a view, howsoever strong the reasons may be.
(ii) The provision of Rule 154 of NCLT Rules is similar to Section 152 of the CPC. In the present case, Tribunal would have had good reasons to state that the relief which is not expressly granted above shall not be construed as granted. The incorporation of the said term in the operative portion of the Plan Approval Order cannot be treated as a clerical mistake or arithmetical error arising from any accidental slip or omission.