Sumit Dabriwala vs Canara Bank (Formerly known as Syndicate Bank) & Anr

Heard Mr. Abhishek Anand, Learned Counsel for the Appellant.

This Appeal has been filed against the Order dated 19th December, 2023 passed by the Adjudicating Authority by which order Section 7 Application filed by the Canara Bank has been admitted. The Adjudicating Authority after hearing the parties returned the finding that there is a debt and default. The findings in para 35 are as follows:

“35. After having considered the pleadings and arguments submitted by both the parties and the reference judgments cited above, we find that there was a debt due which the Corporate Debtor had defaulted to repay. Therefore, the essential elements of a Section 7 Application i.e., debt and default are satisfied.”

Learned Counsel for the Appellant challenging the order submits that in pursuance of the order impugned, the stage in the CIRP is that Form-G has already been issued and resolution plans have been invited. Learned Counsel for the Appellant submits that the Appellant is also desirous to submit a settlement under 12A to the Financial Creditors.

Under 12A, approval with 90% financial creditor, settlement proposal can be placed before the Adjudicating Authority for consideration. In view of the findings returned by the Adjudicating Authority that there is a debt and default, we see no reason to interfere with the impugned order. We however are of the view that it is open for the Appellant who is suspended director of the Corporate Debtor to submit a settlement proposal to the Financial Creditor which may be considered in event, it is approved with 90% and the same may be placed before the Adjudicating Authority.

With these observations, the Appeal is dismissed.