The counsels for Adisri Commercial, the erstwhile promoters of the Srei group, on Monday argued that the Kolkata bench of the National Company Law Tribunal (NCLT) rightfully has the powers to recall its plea seeking to set aside the order admitting the companies under insolvency.

Refuting the arguments presented by Tushar Mehta, the Solicitor General of India, appearing on behalf of the Reserve Bank of India-appointed administrator in the previous hearing, the counsels for erstwhile promoters argued that since the NCLT passed the order, it has the power to recall. The matter has been posted for further hearing on April 11.

It is to be noted that the Solicitor General had, in the previous hearing, delved on the issue of whether the NCLT has powers to recall or review the application since a similar application was moved before both NCLAT and Supreme Court and was dismissed earlier. The moment an appeal is dismissed by the Supreme Court, it remains in the eye of law and “there is no question of recalling or reviewing” that order.

“Since there is no power of reviewing this application, it is not necessary to go into the merits of the application,” he had said.

Adisri Commercial, the erstwhile promoters of the Srei group, had earlier urged NCLT, Kolkata to set aside its order as the date of alleged default fell within the “black out period” mentioned under Section 10A of IBC (Insolvency and Bankruptcy Code).

The Solicitor General had also argued against the very question of maintainability of application filed by erstwhile promoters and said the defaults continued even beyond the moratorium period and hence, the section does not provide support to the companies.

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