Yogesh Gupta vs Punjab National Bank And Another

IN THE MATTER OF: Yogesh Gupta ...Appellant

Versus

Punjab National Bank & Anr. ...Respondents

Present: For Appellant : Present but appearance not marked. For Respondents : Mr. Rajesh Kumar Gautam, Mr. Aant Gautam, Mr. Kavitoli G. Yeptho, Ms. Likivi Jakhalu, Ms. Shivani Sagar, Mr. Dinesh Sharma, Mr. Kushagra Nilesh Sahay, Daida, Advocates.

ORDER

(Hybrid Mode)

11.07.2024: Heard learned counsel for the Appellant and Shri Rajesh

Kumar Gautam, learned counsel appearing for the Respondent Bank. This

Appeal has been filed against order dated 12.12.2023 passed by the

Adjudicating Authority by which Section 7 application by Punjab National

Bank has been admitted.

2. Learned counsel for the Appellant challenging the impugned order

submits that under RBI Circular, Bank was required to allow the

Restructuring Proposal. It is submitted that there was no Authorisation in

favour of the Applicant who has filed Section 7 application, hence, the

application under Section 7 ought to have been rejected.

3. Shri Rajesh Kumar Gautam, learned counsel for the Bank submits that

in so far as Restructuring is concerned, the Bank has not restructured the

loan. It is submitted that Appellant has also filed Writ Petition in High Court,

Cont'd.../ 2

in which no such direction has been issued for restructuring. In so far as

authorisation is concerned, along with Form 1, authorisation dated

21.06.2022 was filed, which was part of the application and finding has been

recorded by the Adjudicating Authority in Para 17(i) in this regard.

4. We have considered the submissions of the parties and perused the

record.

5. The mere fact that restricting was no allowed by the Bank cannot be a

ground to reject Section 7 application. Restructuring by the Bank is decision

of the Bank as per policy of the Bank and RBI Circular and Appellant's

argument that since restructuring was not allowed, Section 7 application

ought to have been rejected cannot be accepted.

6. In so far as the question of authorisation is concerned, along with the

Section 7 application filed by the Bank, authorisation has been brought on

the record and further, the Adjudicating Authority in Para 17(i) has also

overruled the said objection and recorded finding that said application has

been filed by an authorised person.

7. We, thus, do not find any merit in submissions of the Appellant. Appeal

is dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No.855 of 2024