Hardeep Singh vs State Bank Of India & Anr
- CitationCompany Appeal (AT) (Insolvency) No.1266 of 2022
Ratio decidendi
The rule this decision rests on
Where the Adjudicating Authority has found debt and default proved on an application under Section 7, it is not an error to admit the application; the admission stands on the proof of debt and default, and an appeal against such admission fails if the findings support it. A settlement offer made after admission of a Section 7 application does not itself bar or reverse admission; the proper course is for the corporate debtor to make its proposal to the financial creditor, and if the creditor accepts it, the parties may apply under Section 12A, which the Adjudicating Authority is to consider and decide.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Hardeep Singh Director of Suspended Board of Director of JSSI Hydraulics Pvt. Ltd. (Corporate Debtor) ...Appellant
Versus
State Bank of India and Anr. ...Respondents
Present: For Appellant: Mr. Dilip Kr. Niranjan, Advocate.
For Respondents: Mr. Siddharth Sangal and Mr. Chirag Sharma, Advocates for R-1.
ORDER
31.10.2022: Heard learned counsel for the parties. This Appeal has been
field against order dated 12.07.2022 by which order the Adjudicating
Authority has initiated insolvency resolution proceedings against the
Appellant on an application filed under Section 7 by the State Bank of India.
It was noted in the order that an OTS proposal was submitted by the Corporate
Debtor dated 06.05.2019 which was approved by the Bank on 27.08.2019 but
was declared failed on 19.09.2020.
2. It is submitted by learned counsel for the Respondent that another OTS
proposal was submitted in February, 2022, after passing of the order, which
is not acceptable to the Bank since the amount offered is less than the amount
offered in the earlier OTS proposal which was accepted.
3. Learned counsel for the Appellant submits that Appellant is ready to
revise his offer.
Cont'd.../ -2-
4. From the facts as have noticed by the Adjudicating Authority and the
findings recorded, we are of the view that no error has been committed by the
Adjudicating Authority in admitting Section 7 application there being debt and
default proved. Insofar as revision of offer is concerned, it is always open for
the Appellant to submit its proposal to the Bank, who may consider the same
and in event of acceptance of any such proposal, it is always open for the
parties to file application under Section 12A, which may be considered and
decided by the Adjudicating Authority. Subject to above observations, the
Appeal is dismissed.
5. Learned counsel for the Appellant submits that he shall be submitting
the OTS proposal within a period of one month. Submission is recorded.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 1266 of 2022
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