Karanraj Sahi vs The South Indian Bank Limited

IN THE MATTER OF: Karanraj Sahi ...Appellant Versus The South Indian Bank Ltd. & Anr. ...Respondents

Present: For Appellant : Dr. Pankaj Garg, Mr. Yaksh Garg, Ms. Saumya Jain and Ms. Yashna Ahuja, Advocates.

For Respondents : Mr. Kausik Chatterjee and Ms. Samridhi, Advocates.

ORDER

(Hybrid Mode)

21.04.2025 : This appeal has been filed against an order passed by the

adjudicating authority (National Company Law Tribunal, Mumbai Bench,

Court - III) admitting Section 7 application filed by South Indian Bank Ltd.

2. Learned counsel for the appellant has e-filed an application on

08.04.2025 bring on record the debt settlement terms between the parties

dated 03.04.2025.

3. Learned counsel for the South Indian Bank submits that debt

settlement terms have been entered, however, the payments are to be made

till 30.09.2025. Learned counsel for the respondent, however, does not

dispute that bank has already settled the issues and financial creditor may

be given liberty to file 12A application. It is further submitted that since the

terms payments are to be made till 30.09.2025, there shall also liberty to the

financial creditor to revive the matter if the settlement is not honoured.

4. In view of the fact that financial creditor who has initiated Section 7

application has already entered into the settlement in view of the judgment of

the Hon'ble Supreme Court in 'GLAS Trust Company LLC' Vs. 'BYJU

Raveendran & Ors.' reported in Civil Appeal No(s). 9986/2024, the remedy

available to the financial creditor is to file 12A application by giving form FA

to the IRP.

5. We have noticed that Clause 2 and Clause 3 of the settlement

agreement amply protect the interest of the bank in accordance with the

default committed in payment of the settlement amount.

6. We permit the financial creditor to file an application under Section 12A

within two weeks. We dispose of this appeal with a liberty to financial creditor

to revive as provided in Clause 2 & 3 of the settlement. The 12A application

be filed read with Regulation 30A by giving Form-FA to the IRP in accordance

with law.

7. Interim order shall continue for a period of two weeks. Subsequent

proceeding shall take place in accordance with the order passed by the

adjudicating authority.

Appeal disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Arun Baroka] Member (Technical) himanshu/nn

Comp. App. (AT) (Ins.) No. 546 of 2025 2 of 2