9911796707
TMI Blog2023 (1) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... clear admission on behalf of the Appellant in default in payment of interest for the quarters ending September 2019 and December 2019, Appellant cannot be permitted to contend that default was committed only on 31.08.2020. Insofar as application being barred by 10A, benefit under Section 10A can be claimed by the application only when there is clear default during the prohibited period. The said benefit cannot be claimed by the Appellant by ignoring the admission of default which was prior to 25.03.2020. There being clear admission in the present case, in letter dated September 9, 2021 where the Corporate Debtor itself has admitted that he has failed to pay interest for the quarters ending September 2019 and December 2019 thus acknowledging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2022. 2. Today, when the Appeal was taken, learned counsel for the Appellant submitted that he has already sent One Time Settlement proposal. Learned counsel for the Financial Creditor submits that proposal as submitted as on date is not acceptable to the Financial Creditor. Learned counsel for the Appellant thereafter proceeded with his submission on the merit challenging the impugned order. 3. The principal submission which was pressed by learned counsel for the Appellant is that as per Annexure 3 to the Debenture Subscription Agreement, clause 6, the date of default for repayment occurs on 31.08.2020, which was during the prohibitory period under Section 10A of the I B Code. Hence, the application itself was not maintainable and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest as aforesaid occurred on September 30, 2019 and December 31, 2019 viz. the last day of the quarters. (b) Any default in payment of interest is an express event of default under the terms of the DSA. (c) The period covered under section 10A of the IBC is March 25, 2020 to March 25, 2021. Clearly the default committed by the Corporate Debtor does not fall within the period prescribed under section 10A of the IBC. In the instant case the default was committed by the Corporate Debtor in September 2019, i.e., prior to the outbreak of the COVID 19 pandemic. Therefore, it cannot be considered as a default during COVID period. 6. The Adjudicating Authority while noticing the submission of the parties have noted the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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