Vinay Kumar Mangalam vs Punjab National Bank & Anr
- CitationCompany Appeal (AT) (Insolvency)No. 866 of 2019
Ratio decidendi
The rule this decision rests on
The order rests on the following reasoning: an applicant's wish to settle a Section 7 claim does not itself warrant interference with an admission, but where settlement is contemplated, the matter may be taken to the Committee of Creditors by way of terms of settlement under Section 12A of the Code; and if the Committee of Creditors approves such settlement by more than 90% of the voting share, the financial creditor may withdraw its Section 7 application.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Vinay Kumar Mangalam .....Appellant Vs. Punjab National Bank & Anr. ......Respondents
Present : For Appellant: Mr. G.Ananda Selvam, Mr. Nityanand Mahato, Advocates For Respondents: Mr. Niraj Agrawal, Advocate
O R D E R
30.09.2019 - Prima facie, no case is made out by which application u/s 7 of
of the Insolvency & Bankruptcy Code, 2016 ('I&B' Code, for short) filed by
Respondent - 'Punjab National Bank' which has been admitted against 'M/s.
Chotanagpur Roadlines Pvt. Ltd.' could be questioned. However, taking into
consideration the fact that the Appellant wants to settle the matter, we adjourned
the matter earlier.
Mr. Niraj Agrawal, Advocate submits that the Appellant has not yet
approached the 'Committee of Creditors' for settlement and in the meantime, the
'Committee of Creditors' has been constituted.
....contd.
2
In the circumstances, we allow the Appellant to move before the
'Committee of Creditors' by filing terms of settlement in terms of Section 12A of
the 'I&B' Code. If such an application u/s 12A is filed, the 'Committee of
Creditors' will consider the same and necessary negotiations be made. If it is
cleared with more than 90% of the voting share, the 'Punjab National Bank' may
withdraw the application u/s 7.
We have noticed that the ''Punjab National Bank' is the only Creditor
having 100% voting share, as informed by the 'Resolution Professional'.
Therefore, it is expected that they will settle the matter amicably as normally
while making one time settlement.
The appeal stands disposed of with aforesaid observations.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A. I. S. Cheema] Member (Judicial)
[Kanthi Narahari] Member (Technical)
ss/sk
Company Appeal (AT) (Insolvency)No. 866 of 2019
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