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2020 (8) TMI 424 - AT - Insolvency and BankruptcyMaintainability of appeal - time limitation - pendency of petition - account of Corporate Debtor declared as NPA on account of default - Appellant contends that during the pendency of the Petition Respondent Bank entered into OTS. However, the Respondent Bank did not withdraw the Petition and suddenly on 29th July 2019 issued a letter asking them to deposit the balance amount as per terms of OTS - non-compliance of the provision of Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016. HELD THAT:- Admittedly, in this case, the account of corporate debtor was classified as NPA on account of default committed on 31st March 2016. As per Article 137 of the Limitation Act, the limitation period of three years was available to the applicant. But before the expiration of limitation period on 13rd March 2018, the Corporate Debtor submitted an acknowledgement of debt in writing and promised to clear the dues at the earliest possible. In addition to this, the Corporate Debtor had also submitted OTS proposal which was later on accepted on 27th December 2018 by the Bank. Thus, it is clear that a fresh period of limitation started after the acknowledgement of the debt by the Corporate Debtor and the Petition was filed within the limitation. Therefore, it is clear that the Petition is not time-barred. It is on record that on the day petition was admitted there was status quo order by the Hon’ble High Court and which was in the knowledge of the Adjudicating Authority. But the Adjudicating Authority admitted the Petition by the impugned order dated 23rd August 2019. Learned Counsel for the Appellant placed reliance on the Respondent‟s letter dated 29th July 2019, which is at page 60 of the paper book. On perusal of the record, it is apparent that after acceptance of OTS for settling the dues of all the three companies in Rs. Sixty Crores, Bank has received a substantial amount from the Corporate Debtor. It is also clear that after making default in payment as per terms of OTS, the Corporate Debtor further paid rupees One Crore to the Bank for renewing the OTS. Bank even after accepting after rupees One Crore revoked the offer to renew the OTS. Considering the present/prevailing economic scenario of the country and downfall/slump in every business activity, we deem it fit and proper to provide one more opportunity to the parties for considering the OTS (One Time Proposal) in a fair, just, objective and dispassionate manner - there is no proper compliance under Section 7(5)(a) of the Insolvency and Bankruptcy Code, but this defect in the Application is a curable defect which can be rectified. The matter is remanded back to the Adjudicating Authority to pass an order afresh, after providing an opportunity to the opposite party - appeal allowed by way of remand.
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