Latest - TMI e-Newsletter
New User/ Regiser
2022 (9) TMI 222 - Insolvency & Bankruptcy
Application for CIRP admitted - One Time Settlement - Corporate Debtor failed to comply with the terms and conditions of OTS Proposal - HELD THAT:- There is no dispute between the parties that offer of 60 Crores made by the Appellants in regard to the dues of all the three Companies was accepted by the Bank and deposit of Rs. 3 Crore was also noticed by the Bank. Under the OTS, Appellants were to deposit Rs. 1.5 Crore each month. The OTS Proposal has been cancelled on 31st July, 2019. The Adjudicating Authority in paragraph 3 of the Order has noticed that Corporate Debtor has failed to comply with the terms and conditions of OTS Proposal. The Adjudicating Authority held that the Corporate Debtor defaulted in making payment towards the liability of the Bank, Company Petitions deserve to be admitted.
It is well settled that although settlement between the parties to be encouraged but the Court/this Tribunal cannot direct the Bank to accept the OTS as claimed for by the Corporate Debtors.
Principle of Judicial Discipline is to be adhered to by all to ensure hierarchical discipline and for proper dispensation of justice but as noticed above in the present case, there is no breach of any judicial discipline by the NCLT as claimed by the Appellants. There was no Interim Order of the High Court restraining the NCLT to proceed with the concerned applications or not to pronounce any Judgment when the matter was heard and reserved for order even prior to passing of the Interim Order of the High Court. Further the Interim Order of the High Court directed to maintain status quo by both the parties i.e. Bank and the Corporate Debtors that cannot be read as any restraint to the NCLT.
No error has been committed by the Adjudicating Authority in admitting Section 7 Applications against the Corporate Debtors - Appeal dismissed.