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2018 (9) TMI 1908 - HC - Insolvency and BankruptcyPower to recall an order - Maintainability of application - initiation of CIRP - Section 9 of the Insolvency and Bankruptcy Code, 2010 - HELD THAT:- It is admitted that there is no provision in IBC for review of the order admitting a petition filed under Section 9 of the IBC. It is also not disputed in law that the power to review can not be exercised unless there is specific provision for the same. As far as power to recall an order is concerned, it is nothing but a procedural review which can be availed only if there is any procedural defect in passing the order or the order has been obtained by playing fraud in any manner. There is hardly any procedural defect pointed out in admitting the petition filed under Section 9 of IBC. The said order of admission is self explanatory and conforms to all the requirements necessary for admitting a petition filed under Section 9 of the IBC - Merely for the reason that it was not contested by respondent no. 3, it can not be said that it was a collusive petition or that the order of admission was obtained by collusion between respondents no. 2 and 3. Prima-facie the order of admission of the petition filed under Section 9 IBC does not appear to be collusive which may warrant recall of the order in exercise of procedural review - Section 65 of IBC deals with the fraudulent and malicious initiation of proceedings and provide that if any person initiates the Insolvency Resolution Process or liquidation proceeding fraudulently or with malicious intent, the adjudicating authority ie. NCLT may impose upon such person a penalty which shall not be less than 1 lakh and may extend to one crore rupees. If the petitioner feels that the petition under Section 9 of IBC for Corporate Insolvency Resolution Process has been initiated by respondent no. 2 fraudulently in collusion with respondent no. 3, it may take recourse to proceedings under Section 65 of IBC - Petition dismissed.
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