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Judgment
26.03.2025: Heard learned counsel for the Appellant as well as learned counsel for the Respondent. This appeal has been filed against order dated 19.12.2024 passed by the Adjudicating Authority admitting Section 7 application filed by the Financial Creditor. The Adjudicating Authority in the impugned order has returned finding of debt and default and admitted Section 7 application.
When the appeal was taken for consideration, submission was made by the Appellant that they proposed to submit a settlement proposal to the Financial Creditor, which is recorded in order dated 07.02.2025, which order is as follows:
“O R D E R (Hybrid Mode)
07.02.2025: Learned Counsel for the Appellant submits that Appellant proposed to submit a Settlement Proposal to the Financial Creditor, who are the members of the CoC.
2.Learned Counsel for the RP submits that CoC has already been constituted and proceeded.
3.Let the proposal be given to the CoC through AR within one week. List this Appeal on 24th February, 2025. Let the proposal be also brought on record by means of Additional Affidavit which may be filed within a week after serving a copy to the other side.”
Although several opportunities were granted but no settlement has finalised so far.
Learned counsel for the Appellant submits that the Appellant is still desirous of settling with the Financial Creditor and submit a fresh settlement proposal.
Learned counsel for the Respondent submits that CoC has voted and rejected the earlier proposal.
We have considered the submissions of learned counsel for the parties and perused the record.
The Adjudicating Authority has returned the finding of debt and default in Para 5(viii), which is as follows:
“viii.) In light of this, we are of the considered view that, in the presence of a clear debt and default, the present Application is a fit case for admission under the provisions of the Code. Accordingly, we find no grounds to reject the application, and as such, are constrained to admit the present application.”
We, thus, do not find any error in the order of the Adjudicating Authority to be interfered with in this appeal. In so far as submission of learned counsel for the Appellant that Appellant is desirous of submitting settlement proposal, it is open for the Appellant to approach the Financial Creditor. In event of any settlement, the Financial Creditor can file application under Section 12A in accordance with law. Subject to above, Appeal is dismissed.