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Judgment
16.05.2025 This Appeal has been filed against the order passed by National Company Law Tribunal (Adjudicating Authority), New Delhi Bench dated 30.07.2024 by which order on application filed by Canara Bank, Section 7 Application was admitted and moratorium was directed. When the appeal was taken the Appellant made a prayer that Appellant is taking steps and has submitted an OTS letter to Canara Bank and the statement was made on behalf of the bank also that the OTS proposal is under consideration.
However, this Tribunal in order dated 20.12.2024 passed an Interim Order to the effect that the CIRP Process may go on, however, no Resolution Plan shall be considered. It was noticed by this Tribunal that settlement has not fructified. On 28.03.2025, the following order was passed:
“28.03.2025 Learned Counsel for the Appellant submits that interim order was passed on the ground that Appellant has given the OTS proposal.
Learned Counsel for the Appellant submits that although the settlement which was prayed by the Appellant and has not yet been accepted by the bank, however, the interim order be continued till next date to enable the Appellant to make final efforts. We make it clear in event settlement is not brought on record the interim order shall stand vacated on 01.04.2025.
Learned Counsel for the Respondent has opposed the continuation of the interim order, we clarify the interim order shall stand vacated on 01.04.2025. In event the settlement has not brought on record on 01.04.2025. List on 01.04.2025, high on board.”
The interim order stand vacated on 01.04.2025, when the matter was taken the following order was passed:
“01.04.2025 On 28.03.2025, we had passed an order that in event no settlement is brought on record the interim order shall stand vacated.
Learned Counsel for the Appellant present today. No settlement has been brought on the record. Hence the interim order passed on 20.12.2024 stand vacated.
Learned Counsel for the Appellant submits that Appellant’s proposal is still being considered by the Head Office and he is hopeful that the proposal may be accepted. In the event the proposal is accepted it is always open for the Appellant to request the Financial Creditor to file give Form – FA for filing a 12A application to the Resolution Professional. As prayed, list this Appeal on 25.04.2025.”
In order dated 01.04.2025 we have already observed that, in event the proposal is accepted it is always open for the Appellant to request the Financial Creditor to file give Form – FA for filing a 12A application.
Mr. Kailash Vasdev, Ld. Senior Counsel appears today submits that there is another investor who is ready to make the payment to the Financial Creditor. The fact that the settlement proposals were submitted to the Financial Creditor itself indicate that debt and default is admitted. We thus, we do not find any error in the order of the Adjudicating Authority admitting Section 7 Application. We however, further observe that in event any settlement is reached with the Financial Creditor, the Financial Creditor may give Form - ‘FA’ to the RP for filing 12A Application, which may be filed in accordance with law.
Learned Counsel for the Appellant submits that the fresh offer will be given to the Canara Bank. Recording the aforesaid submissions, with the above observations. The Appeal is dismissed.