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Judgment
(Hybrid Mode)
This appeal has been filed against order dated 29.01.2026 by which Section 7 application filed by the Canara Bank has been admitted. The Corporate Debtor is a running hospital. Appeal was taken on 12.03.2026, observations made in Paras No. 3, 4, 5 and 6 of order dated 12.03.2026 are as follows:
“3.Learned Counsel for the Appellant submits that in view of the aforesaid settlement proposal which has been noticed and principally agreed by the CoC an application under Section 12A is to be filed for withdrawal of the CoC on finalization of the terms. It is submitted that the Corporate Debtor is running the hospital where patients were admitted and running of the hospital is essential for the Corporate Debtor.
4.Considering the aforesaid, we are of the view that the Appeal need to be taken after three weeks to Cont’d…/ enable the Appellant to bring Settlement Terms on record.
5.Let ‘Notice’ be issued to the Respondents through ‘Speed Post’. Let the requisites together with process fee be filed within three days from today. The Appellant is required to provide the e-mail address of the Respondents and in that mode also, the service can be effected. The Appellant is also required to furnish the Mobile No. of the Respondents to the ‘Office of the Registry’.
6.List the Appeal on 06.04.2026.
In the meantime, the IRP shall ensure that hospital runs as a going concern with the assistance of the Appellant and other officers and employees of the Corporate Debtor and till the decision is taken with regard to the filing of Section 12A, IRP not to take any further steps.”
Learned counsel for the Appellant submitted that settlement has been entered with the Canara Bank and Canara Bank has already given Form FA to the IRP to file application for withdraw of CIRP under Section 12A, which application has been filed before the NCLT. The CoC in its meeting held on 15.04.2026 has approved the settlement with 100% and the application under Section 12A is next listed before Adjudicating Authority on 11.06.2026.
In view of the aforesaid, we are of the view that no purpose shall be served in keeping the appeal pending. Appeal is disposed of. The Corporate Debtor having running hospital, we observe that the Adjudicating Authority shall endeavour to consider and dispose of the application on the next date or as early as possible. The interim protection already granted shall continue till disposal of 12A application.