NCLT Kochi Recalls Oral Order Minutes After Pronouncement Over Undisclosed Facts

The National Company Law Tribunal (NCLT) at Kochi recently recalled its oral order allowing withdrawal of the corporate insolvency resolution process (CIRP) against Air Travel Enterprises India Limited.

The tribunal did so within five minutes of pronouncing the order, after the Resolution Professional (RP) brought to its notice material facts regarding the Committee of Creditors (CoC) that had not been disclosed earlier.

A bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was hearing an application filed under Rule 11 of the NCLT Rules. The application sought withdrawal of the insolvency proceedings after the account was closed under a One-Time Settlement (OTS).

The tribunal recorded the respondent's submission that dues of ₹6.95 crore payable to the financial creditor had been paid under the OTS. It also noted that the appeal pending before the National Company Law Appellate Tribunal (NCLAT) had been withdrawn.

Recording these submissions, the bench observed:

"We find no legal impediment to allow withdrawal of this application. Applicant is directed to pay the fee of RP along with all the expenses if any, already not paid. The Applicant shall file a compliance memo before the Registry within seven (7) days."

Within five minutes, counsel appearing for the Resolution Professional informed the Nench that the withdrawal application had been filed by Union Bank of India, one of the financial creditors, without sonsensus of other financial creditors.

Counsel further submitted that the issue had been considered at a Committee of Creditors meeting held the previous day.

The tribunal noted that it had orally allowed withdrawal of the proceedings. However, the order had not yet been signed. It further recorded that the Resolution Professional had subsequently brought to its notice certain material facts that had not been disclosed earlier.

"Had the appearing Counsels disclosed the correct factual position regarding the constitution and status of the Committee of Creditors, this Bench would not have passed such an oral order," the tribunal observed.

Referring to the Supreme Court's recent decision in Fakir Mamad Suleman Sameja v. Adani Ports and Special Economic Zone Ltd., the Tribunal quoted, "...before signing an order, the Court can modify an orally pronounced order if there exists some error of law and fact."

Applying that principle, the tribunal recalled its oral order. It noted that the order had not yet been signed and that material facts had subsequently been brought to its notice.

Accordingly, the NCLT recalled its oral order and directed that the matter be listed on July 20, 2026, to the consider the withdrawal plea.

For Petitioners: ASP Kurup and Sadchith P Kurup

For Respondents: KSR & Co