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Judgment
12.02.2026 : These appeals have been filed against the common order dated 07.08.2025 passed by the adjudicating authority (National Company Law Tribunal, Ahmedabad, Division Bench, Court – I), admitting Section 95 application.
In Comp. App. (AT) (Ins.) No. 1577/2025, an I.A. No.629/2026 has been filed along with which the letter dated 22.12.2025 of the Indian Bank has been brought on the record, where Indian Bank has accepted the One Time Settlement (OTS) proposal of Rs.3.25 crore.
Learned counsel for the RP submits that apart from Indian Bank there are other creditors.
Appellant’s counsel submits that under the OTS, two payments have already been made and for two payments, the time is till March, 2026.
In view of the fact that OTS has already been entered and there are no other creditors, we do not see any justification as on date to proceed with the proceedings under Section 95 which were admitted against the personal guarantors, the appellants herein.
Counsel for the bank submits that bank has no objection withdrawing the proceedings provided that liberty should be granted to the bank to revive the proceedings before the NCLT, in event, if default is made in any payment by the corporate debtor.
In view of the facts as noted above in the application, we see no reason to continue the proceeding under Section 95 initiated against the appellant. The proceedings under Section 95 against the appellants stand closed with liberty to the bank, financial creditor to revive these appeals, in event, there is any default committed by the corporate debtor in making the balance payments.
In view of the above, the order impugned is set aside. Proceedings under Section 95 initiated against the appellants are closed with liberty aforesaid.
All the appeals are disposed accordingly.