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2023 (8) TMI 1156 - AT - Insolvency and BankruptcyWithdrawal of application u/s 7 which was admitted - Acceptance of the One Time Settlement (OTS) - No intent to proceed further with CIRP - HELD THAT - In view of the acceptance of OTS, no purpose shall be served in proceeding the CIRP any further - the CIRP proceedings are closed and the order impugned dated 23.11.2022 is set aside. Liberty is given to the Canara Bank for revival, if any, such circumstances arise. In view of the fact that CoC has not been constituted in pursuance of the Interim Order passed by this Tribunal, the Applicants (SRS Private Investments Powai Ltd. and ICICI Bank) are at liberty to take appropriate steps in accordance with law. IRP fees and expenses shall be paid within two weeks by the Appellant. Appeal disposed off.
Issues:
The issues involved in this case are the admission of a Section 7 application by the Adjudicating Authority, the submission of a Scheme of Arrangement under Section 230 of the Companies Act, the acceptance of a One Time Settlement (OTS) proposal, and the intervention applications filed by SRS Private Investments Powai Ltd. and ICICI Bank. Admission of Section 7 Application: The appeal was filed against the order admitting the Section 7 application filed by Canara Bank. The appellant challenged this order, citing a Scheme of Arrangement under Section 230 of the Companies Act related to a sister concern of the Corporate Debtor. The appellant emphasized the importance of the Scheme in monetizing assets to liquidate dues. The Tribunal decided to await the outcome of the Scheme for maximizing asset value and resolving Canara Bank's dues, issuing notices for replies and setting a future hearing date. Acceptance of One Time Settlement (OTS) Proposal: Canara Bank accepted a proposal for OTS submitted by the Corporate Debtor, Supreme Housing & Hospitality Pvt. Ltd., leading to the bank's decision not to proceed with the Corporate Insolvency Resolution Process (CIRP) any further. The Tribunal closed the CIRP proceedings and set aside the previous order dated 23.11.2022, granting Canara Bank liberty for revival if necessary circumstances arise. The absence of a constituted Committee of Creditors (CoC) allowed SRS Private Investments Powai Ltd. and ICICI Bank to take appropriate legal steps, with the Appellant directed to pay IRP fees and expenses within two weeks. Intervention Applications by SRS Private Investments Powai Ltd. and ICICI Bank: SRS Private Investments Powai Ltd. and ICICI Bank filed intervention applications seeking to participate in the matter. SRS Private Investments Powai Ltd. claimed interest in the Financial Creditor, Supreme Housing & Hospitality Pvt. Ltd. Reference was made to a judgment of the Honorable Supreme Court in a related matter. After hearing the counsels, the Tribunal concluded that proceeding with the CIRP was unnecessary due to the acceptance of the OTS, leading to the closure of the proceedings and the setting aside of the previous order. This comprehensive summary outlines the key legal issues addressed in the judgment, including the admission of the Section 7 application, the acceptance of the OTS proposal, and the intervention applications filed by interested parties.
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