The Statutory Text and Its Limits
Section 420(2) empowers the NCLT, at any time within two years from the date of the order, to amend any order passed by it “with a view to rectifying any mistake apparent from the record.” The power is exercisable on the Tribunal’s own motion or on the application of a party. The proviso bars any amendment in respect of an order against which an appeal has been preferred under the Act.
The phrase “mistake apparent from the record” is narrower than the review power of a civil court under Order XLVII CPC. It covers arithmetical errors, clerical mistakes, and errors arising from an accidental slip or omission. It does not extend to a re-appreciation of evidence, a reconsideration of the merits, or a correction of a legal error that requires argument.
The Two-Year Outer Limit
The two-year period runs from the date of the order, not from the date of knowledge or the date of the applicant’s discovery of the mistake. An application filed after two years is barred, even if the mistake is genuine. The NCLT has no power to condone the delay beyond the statutory period, because the limitation is part of the provision that creates the power.
The Appeal Bar
The proviso to Section 420(2) is absolute: once an appeal has been preferred against the order, the NCLT cannot amend it. The bar applies even if the appeal is pending, and even if the applicant withdraws the appeal after filing. The rationale is to prevent the Tribunal from exercising a parallel jurisdiction over an order that is sub judice before the appellate tribunal.
The Distinction from Recall
A “recall” of an order is a different remedy. The NCLT may recall an order passed in the absence of a party, or an order obtained by fraud or misrepresentation. The recall power is not the same as the Section 420(2) rectification power; it is an inherent power to correct a procedural injustice. A party that seeks to set aside an order on the merits must file an appeal, not a review application.
The Practical Use
Section 420(2) is most useful for correcting typographical errors in the operative portion of an order, reconciling inconsistencies between the reasons and the directions, and correcting arithmetical mistakes in the computation of amounts. It is not a substitute for an appeal, and an application that seeks a substantive change in the order is likely to be dismissed.
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