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TMI Blog2022 (5) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... committed. The Appellant submitted that there was no cancellation of the compromise OTS dated 28.05.2020, hence, it cannot be said that there was any debt due on the Corporate Debtor - said submission cannot be accepted in view of the clear stipulation of Clause 6 'Default Clause', the Bank has every right to proceed and exercise all its rights when default is committed. It is not the case that no default was committed on 30.06.2020 nor there is any material on record to indicate that payment as was required to be paid on 30.06.2020 was paid - there are no error in the order of the Adjudicating Authority admitting Section 7 Application - appeal dismissed. - Comp. App. ( AT ) ( Ins. ) No. 561 of 2022 - - - Dated:- 19-5-2022 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e this has been noticed. 4. Learned Counsel appearing for the Respondent- Financial Creditor does not deny that OTS took place on 28.05.2020. It is however, submitted that the payments which was scheduled to be made on 30.06.2020 i.e. first installment was itself defaulted and no payments were made apart from payment of Rs. 20 Cr. which was on the communication of Sanction Order. It is submitted that in view of the default clause, the Financial Creditor was fully entitled to take proceedings and the effect of default is that OTS was stood breached and the Financial Creditor was fully entitled to proceed. It is submitted that the Application under Section 7 was filed on 25.09.2020 after default was committed for installment on 30.06.2020. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reserve its right to cancel the compromise settlement and will be entitle to exercise against the borrowers/ guarantors all rights and remedies available prior to the compromise settlement as per applicable law. The Default Clause clothe the Financial Creditor the right to file Application under Section 7 which was done after 30.06.2020 when default was committed. 8. Learned Counsel for the Appellant submitted that there was no cancellation of the compromise OTS dated 28.05.2020, hence, it cannot be said that there was any debt due on the Corporate Debtor. 9. We do not accept the above submission in view of the clear stipulation of Clause 6 'Default Clause', the Bank has every right to proceed and exercise all its rights wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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