2024 (3) TMI 864 - AT - Insolvency and Bankruptcy

Initiation of CIRP - Failure to make deposits the entire OTS amount - section 7 still pending - It is submitted that the Appellant is ready to deposit the entire OTS amount which was earlier arrived along with 12% interest in the Court to show his bonafide - HELD THAT - Admittedly Section 7 application is still pending before the Adjudicating Authority. From the facts which have been brought on the record it is clear that the deposit could not be made by the Appellant as per our order dated 29.02.2024 by 10.03.2024 since letter dated 29.02.2024 could not be responded before the 10.03.2024. Since Section 7 application is pending before the Adjudicating Authority it is for the Adjudicating Authority to take a call on the submissions and offer made by the Appellant. The Appellant and the investors as submitted before the Court may deposit the amount of Rs.167 Crores along with 12% interest and Rs.87 Crores plus 12% interest before the NCLT within 10 days as prayed by way of FDR in favour of Registrar NCLT. If the said deposit is made or not made the Adjudicating Authority shall take appropriate decision on Section 7 application after hearing both the parties. There are no reason to keep the Appeals pending - Both the Appeals are disposed of accordingly.

Summary

Issues Involved:
The judgment involves Company Appeal (AT) (Ins.) No.558 of 2024 and Company Appeal (AT) (Ins.) No.559 of 2024 filed against the orders dated 12.03.2024 by the Adjudicating Authority hearing Section 7 applications filed by ICICI Bank and Axis Bank Limited, respectively.

Company Appeal (AT) (Ins.) No.558 of 2024:
The Appellant submitted an Affidavit stating readiness to pay the entire amount as per earlier arrived One Time Settlement (OTS) with ICICI Bank and Axis Bank Limited. The Tribunal had disposed of earlier appeals related to these banks without expressing any opinion on the merits of the case. The Appellant offered to deposit the OTS amount with interest, but the banks opposed, claiming the OTS had ended due to non-payment. The investor also expressed willingness to deposit the amounts.

Company Appeal (AT) (Ins.) No.559 of 2024:
Similar to the first appeal, the Appellant sought to pay the OTS amount with interest to Axis Bank Limited, which was contested by the bank. The investor also indicated readiness to deposit the specified amounts within a week.

The Tribunal considered the submissions and records, noting the pending Section 7 application before the Adjudicating Authority. It acknowledged the failure to meet the deposit deadline set in the previous order. The Tribunal ruled that the Adjudicating Authority should decide on the submissions and offers made by the Appellant. In the interest of justice, the Appellant and investors were directed to deposit the specified amounts within 10 days to the National Company Law Tribunal (NCLT) by way of Fixed Deposit Receipt (FDR) in favor of the Registrar, NCLT. The Adjudicating Authority would then make a decision on the Section 7 application after hearing both parties.

In conclusion, the Appeals were disposed of without expressing a final opinion on the case's merits or the contentions of the parties involved.