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Company & Insolvency LawSupreme Court of India

M/s Lamba Exports Pvt. Ltd. v. M/s Dhir Global Industries Pvt. Ltd. and Ors.

Special Leave Petition (Civil) · 2026 INSC 275Decided 23 Mar 2026
MA-001256 of 2025 in SLP(C) No. 12264 of 2024
Justice Vikram Nath · Justice Sandeep Mehta

Background

Lamba Exports had an Agreement to Sell (2021) for a Gurugram commercial property owned by Dhir Global Industries, and had paid substantial amounts including a deposit toward the seller's proposed One Time Settlement (OTS) with its bank. When the seller tried to back out citing the bank's non-acceptance of the OTS, Lamba Exports sued for specific performance and interim injunction; after losing at the appellate stage and in the Punjab and Haryana High Court, its Special Leave Petition to the Supreme Court was also dismissed in February 2025. It then filed a Miscellaneous Application seeking recall of that dismissal, arguing that later events: a fresh OTS the seller struck with its bank, and the Committee of Creditors' subsequent approval to withdraw insolvency proceedings under Section 12A of the Insolvency and Bankruptcy Code: showed suppression of material facts and fraud on the Court.

Decision Breakdown

The Supreme Court dismissed the recall application primarily on the ground of maintainability: once an SLP is dismissed by a non-executory, non-speaking order, the Court becomes functus officio (loses jurisdiction) and a post-disposal application can only be entertained in narrow situations like correcting a clerical error or where an executory order has become impossible to implement, neither applied here. The Court also held that subsequent developments in a separate insolvency proceeding cannot retroactively be used to reopen a disposed civil case, and that allegations of "fraud on the court" require more than bare assertions about later, unrelated events. It further reaffirmed settled insolvency law that the Committee of Creditors' commercial wisdom in approving a settlement and withdrawal under Section 12A of the IBC is largely non-justiciable and cannot be second-guessed by comparing it to a rival private offer.

Lesson Learnt

Once the Supreme Court finally dismisses a case, that order generally cannot be reopened through a later miscellaneous application merely because new developments occurred afterward in a separate, unrelated proceeding: litigants must pursue any fresh grievance through the appropriate separate legal remedy rather than trying to reopen a closed matter.

M/s Lamba Exports Pvt. Ltd. v. M/s Dhir Global Industries Pvt. Ltd. and Ors. – Legal Case Shots | LegalAware