AI Structured Summary
Not yet generated for this judgment
Judgment
09.01.2025 Heard Learned Counsel for the Appellant. Learned Counsel appearing for the Indian Bank as well as Learned Counsel for the Union Bank of India and Bank of Baroda.
This Appeal has been filed against the order dated on 21.06.2024 by which order Adjudicating Authority admitted Section 7 Application filed by the Indian Bank. Application was initiated for Rs.43,23,26,516/- when the appeal was taken for consideration. Learned Counsel for the Appellant had submitted that proposal to the Indian Bank has been submitted for OTS on 04.07.2024, the following order was passed:
“04.07.2024: Learned Counsel for the Appellant submits that the Appellant has already submitted a proposal to the Bank for consideration. investor has already shown his interest that is communicated to the Bank and Bank is considering the proposal.
2.Shri Gautam, Learned Counsel appearing for the Respondent submits that he shall obtain instructions with regard to proposal of the Appellant. 3. List this Appeal on 19.07.2024. In the meantime, in pursuance of the impugned order, Resolution Professional shall not take any further steps.”
This Tribunal also recorded the subsequent proceeding, the status report filed by the Resolution Professional and details of the claim received in pursuance of the following advertisement.
The Counsel appearing for the Union Bank of India and Bank of Baroda has also filed Intervention Application praying that they are also Financial Creditors who have claim against the Corporate Debtor. Learned Counsel for the Union Bank of India submits that they have already filed an application of Section 11 against the Corporate Debtor which is pending before consideration.
Learned Counsel for the Appellant submits that he has also submitted an OTS to Union Bank of India. Today, when the matter was taken Learned Counsel for the Appellant as well as Learned Counsel for the Indian Bank submitted that OTS has already been accepted by Indian Bank and no dues certificate has issued on 01.01.2025 and all payments have been made under the OTS.
In the facts of the present case and in view of the law laid down with Hon’ble Supreme Court in GLAS Trust Company the appropriate recourse to be taken by the Appellant in the present matter is to permit the Financial Creditors to file 12A Application through the IRP in accordance with Section 12A read with Regulation 30A of CIRP Regulation, 2016.
Learned Counsel for the IRP pointed out that CIRP cost has been incurred. It is open for the Financial Creditor while filing the application under Section 12A to take into consideration the CIRP cost by giving a Form ‘FA’ to the IRP for filing the Application. The other Financial Creditors including Union Bank of India, Bank of Baroda or any other Financial Creditors are free to file their objections, in the event their dues are not settled or taken care of.
In view of the aforesaid, we see no reason to keep the appeal pending. The Appeal is disposed of with giving liberty to the Financial Creditor - Indian Bank to file an application under 12A through IRP in accordance with 12A Regulation 30A which shall be done within two weeks from today. The IRP shall take steps for getting the application listed and disposed of at an early date for a period of within six weeks. The Committee of Creditors may not be constituted, however, subsequent steps after six weeks shall be taken in accordance with order passed by the Adjudicating Authority.
RP already being in place, he shall continue the Corporate Debtor as a going concern till any orders are passed by the Adjudicating Authority.