Amit Ashok Thepade vs Vsj Investments Private Limited & Anr
- CitationCompany Appeal (AT) (Ins.) No. 451 of 2024
Ratio decidendi
The rule this decision rests on
The appellate tribunal's reasoning rests on two points. First, where the adjudicating authority has found on the evidence that the debt is due and that a default has occurred, and the default amount exceeds the statutory threshold, an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is rightly admitted; no error is found in admitting such an application on those findings. Second, a corporate debtor or personal guarantor who wishes to settle with the financial creditor may do so at any stage, and any settlement reached may be placed before the adjudicating authority by way of an application under Section 12A with the financial creditor's consent.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Amit Ashok Thepade ...Appellant
Versus
VSJ Investment Pvt. Ltd. & Anr. ...Respondents
Present: For Appellants: Mr. Dhaval Deshpande, Mr. Amir Arsiwala, Advocates. For Respondents: Ms. Samiksha Godiyal, Mr. Govind Manoharan, Mr. Nishchaiy Sharma, Advocates for R-2.
ORDER
(Hybrid Mode)
01.03.2024: heard learned counsel for the Appellant. This Appeal has
been filed against order dated 09.02.2024 by which order Section 7
application filed by the Financial Creditor has been admitted. The
Adjudicating Authority in the impugned order has returned a finding that
debt and default has been proved and there being default of more than
amount of Rs.1 Crore which is threshold amount, application has been
admitted. The submission that application is barred by limitation and
proceeding under Section 95 has been initiated against the Personal
Guarantor were also dealt with and repelled.
2. Learned counsel for the Appellant submits that the Appellant intent to
approach the Financial Creditor to settle the amount
Cont'd.../ -2-
3. It is always open for the Appellant to approach the Financial Creditor
for settlement and if any settlement is reached the same may be placed before
the Adjudicating Authority by means of Application under Section 12A with
the consent of the Financial Creditor. Debt and default being proved; we do
not find any error in the order of the Adjudicating Authority admitting Section
7 application. With aforesaid liberty we dismiss the appeal.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Indevar Pandey] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No.451 of 2024
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