NCLAT considers ED's application to recall order setting aside Adjudicating Authority's decision

KanoonHQ Legal Gazette · AI-generated brief from the source linked below. How briefs are made

Published 3 November 2026

Case: M/S Art Constructions Private Limited vs Mr. Udayraj Patwardhan & Ors
Bench: Barun Mitra, Member (Technical)
Decided: 2 November 2026
Source: Indian Kanoon (NCLAT)

Bottom Line Up Front (BLUF)

In M/S Art Constructions Private Limited vs Mr. Udayraj Patwardhan & Ors, decided on 2026-11-02, the NCLAT considered an application by the Directorate of Enforcement (ED) to recall its order dated 16.04.2026. The impugned order had set aside the Adjudicating Authority's order dated 27.02.2026 and revived a resolution plan for consideration.

Ratio Decidendi · Legal Principle Established

The excerpt does not contain the ratio decidendi as it only describes the procedural posture of the case, specifically an application for recall.

Practice & Procedural Impact for Advocates

Advocates should note that the Directorate of Enforcement (ED) may intervene in insolvency proceedings and seek recall of orders. Litigants should be prepared for potential challenges to orders approving or rejecting resolution plans, even after they have been passed.

Key Legal Takeaways

1The Directorate of Enforcement (ED) can file applications in insolvency proceedings.
2Recall applications can be filed against orders passed by the NCLAT.
3The NCLAT's prior order had set aside an Adjudicating Authority's decision and revived a resolution plan.

The Legal Issue This matter concerns I.A. No. 6907 of 2026, filed by the Directorate of Enforcement (ED), seeking the recall of an order dated 16.04.2026 passed by the National Company Law Appellate Tribunal (NCLAT) in CA(AT)(Ins)No. 460 of 2026. The impugned order had set aside a previous order of the Adjudicating Authority dated 27.02.2026 and revived I.A No. 1817 of 2023, which was an application by the Resolution Professional seeking approval of a resolution plan, for reconsideration by the Adjudicating Authority.

Court's Reasoning The provided excerpt only details the procedural background and the nature of the application filed by the ED. It states that the ED is aggrieved by the NCLAT's order of 16.04.2026 and has filed the recall application with specific prayers. The reasoning of the Tribunal on the merits of the recall application is not contained within this excerpt.

What Follows The NCLAT will now consider the prayers made by the Directorate of Enforcement in I.A. No. 6907 of 2026. The outcome will determine whether the NCLAT's order dated 16.04.2026, which set aside the Adjudicating Authority's order and revived the resolution plan, will be recalled or upheld. The Adjudicating Authority's further consideration of the resolution plan is contingent on the NCLAT's decision on this recall application.