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TMI Blog2025 (3) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... eer Kant and Ms. Anoushka Deo, Advocates for R-1 For the Intervenor : Mr. Arijit Prasad, Sr. Advocate with Ms. Nishtha Kaura, Advocates ORDER ASHOK BHUSHAN, J. This appeal by a suspended director of the corporate debtor has been filed challenging the order dated 23.09.2024 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Principal Bench) admitting a Section 7 application filed by the State Bank of India (SBI) against the Corporate Debtor, Bareilly Highways Project Ltd. 2. Brief facts necessary to be noticed for deciding the appeal are: i. The corporate debtor was constituted a Special Purpose Vehicle (SPV) for carrying out National Highway Project to construct, operate and maintain the four laning of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere liberty was granted to the corporate debtor to submit OTS with the lead bank. xi. Adjudicating Authority after hearing the parties returned a finding that debt and default is proved, Adjudicating Authority directed for admission of Section 7 application by order dated 23.09.2024. xii. Appellant, the suspended director of the corporate debtor, challenging the order dated 23.09.2024 filed this appeal. xiii. When the appeal came for consideration, it was submitted by the appellant that appellant has submitted the proposal on 08.10.2024 of Rs.550 Crore. Noticing the said submissions, interim order was passed by this Tribunal on 15.10.2024. Order dated 15.10.2024 is as follows: "1. Counsel for the Appellant submits that after the Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment has yet been made by the State Bank of India. 2. We are of the view that in event any settlement takes place with all banks the route open to the appellant is to file application under Section 12A of IBC. The Counsel for the appellant submits that the appeal be taken in the first week of January to inform the court about the settlement so that appropriate directions be issued for proceeding under Section 12A. 3. List this appeal on 13.01.2025. 4. We make it clear that this will be the last opportunity for the appellant to inform court about settlement, if any. 5. Interim order to continue." xv. There being assignment by the SBI in favour of NARCL, substitution was permitted of NARCL. By order dated 13.01.2025, appeal was he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Section 7 proceeding, the Adjudicating Authority has to consider the debt and default and debt and default being proved, no error can be said to have been committed by the Adjudicating Authority in admitting Section 7 application. The appellant has taken various opportunities and has prolonged the hearing of the appeal after obtaining an interim order due to which the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor could not proceed any further. Learned counsel for the respondent has also referred to the judgment of the Hon'ble Supreme Court dated 11.05.2023 in the matter of 'M. Suresh Kumar Reddy' Vs. 'Canara Bank & Ors.', in Civil Appeal No.7121/2022, in support of his submission that the debt and default bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roposal filed a Writ Petition No. WP (Civil) No. 11150/2024 titled as Bareilly Highways Project Ltd. vs RBI & Ors. The Hon'ble High Court of Delhi passed first order on 12.08.2024 & 13.08.2024 more particularly para 12 & 13 which read as under:- "12. In view of peculiar facts and circumstances of the matter, the petitioner company is granted liberty to submit another 'OTS' with the lead banker i.e. respondent No. 2/SBI within a week and the matter may be considered thereafter by the Settlement Advisory Committee within two weeks after affording an opportunity of hearing to the petitioner company. This is without prejudice to rights and contention of the parties. 13. In view of the above, the learned NCLT may proceed as per law after f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Tribunal the appellant pleaded that they have given OTS proposal to the financial creditors. In order dated 25.10.2024, we have noticed the submissions of the counsel for the SBI that SBI has not accepted the proposal. Even after 25.10.2024, appellant took time to bring settlement on record in which appellant miserably failed. The sequence of the event in the appeal as noted above clearly proves that debt and default is an admitted fact. From the facts brought on the record, it is clear that corporate debtor is unable to clear its debt and it is fit case where insolvency resolution process against the corporate debtor be proceeded. 10. We, thus do not find any error in the order of the Adjudicating Authority admitting Section 7 applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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