Sumit Dabriwala Suspended Board Of ... vs The Canara Bank Limited And Anr

Sumit Dabriwala ...Appellant(s)

Versus

Canara Bank (Formerly known as Syndicate Bank) & ...Respondent(s) Anr.

Present: For Appellant : Mr. Abhishek Anand, Mr. Karan Kohli, Ms. Jasleen Singh Sandha, Ms. Sakshi Chahar, Advocates For Respondents : Mr. Dipankar Das, Ms. Sanjana Nandi, Advocates for R- 1 Mr. Siddharth Makkar, Ms. Pooja Sah, Advocates for IRP

ORDER

(Hybrid Mode)

06.03.2024: Heard Mr. Abhishek Anand, Learned Counsel for the

Appellant.

2. 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."

2 3. 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.

4. 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.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) Basant/nn

Company Appeal (AT) (Insolvency) No.211/2024