The Scope of the Remedy
The rectification power is limited to “mistake apparent from the record.” The mistake must be obvious from the face of the record, without the need for a long-drawn inquiry or the examination of evidence. Arithmetical errors, clerical mistakes, and errors arising from an accidental slip or omission are within the scope. A legal error that requires interpretation is not.
The Two-Year Limit
The application must be filed within two years from the date of the order. The period is not extendable, and the NCLT has no power to condone the delay. The applicant should compute the two-year period from the date of the order, not from the date of knowledge.
The Appeal Bar
The proviso to Section 420(2) bars rectification once an appeal has been preferred. The bar applies even if the appeal is pending or is subsequently withdrawn. The applicant must choose between rectification and appeal; the two remedies are not concurrent.
The Procedure
The rectification application is filed in the prescribed form, accompanied by the affidavit and the documents. The applicant should identify the specific mistake, the portion of the order that requires correction, and the corrected version. The NCLT may hear the application ex parte or after notice to the other side.
The Practical Use
The rectification application is most useful for correcting the operative portion of an order—for example, a wrong amount, a wrong date, or a wrong name. It is not a substitute for an appeal on the merits, and an application that seeks a substantive change is likely to be dismissed.
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