# In the matter of Gaurav Singal Vs Indian Bank

> HC judgment dated 2022-11-30. Citation: TCN-2022-HC-00013. The petitioner filed a writ petition. The respondent/Bank sought to contend that a decision was…

- **Court:** HC
- **Order date:** 30 Nov 2022
- **Citation:** TCN-2022-HC-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/gaurav-singal-vs-indian-bank-8eaa3a02

## Summary

### Background

The petitioner filed a writ petition. The respondent/Bank sought to contend that a decision was made by the competent authority regarding the petitioner's OTS proposal, and that this decision was to be communicated to the petitioner. However, the material presented by the respondent/Bank indicated that no such decision had been taken and communicated. The petitioner's OTS offer of ₹37 crore was pending, but the respondent/Bank proposed a sale to ARCs after the writ petition was filed. The respondent/Bank intended to transfer/assign the debt owed by M/s JVR Forging Limited, whose promoter and Ex-director was the petitioner.

## Facts

The petitioner made an OTS proposal to the respondent/Bank. The respondent/Bank claimed to have made a decision on the OTS proposal, but the court found no evidence of this. The petitioner's OTS offer was for ₹37 crore. The respondent/Bank proposed a sale to ARCs after the writ petition was filed. The respondent/Bank intended to transfer/assign the debt owed by M/s JVR Forging Limited, whose promoter and Ex-director was the petitioner. A resolution applicant had previously quoted ₹30.25 crore, and the committee of creditors, consisting solely of the respondent/Bank, had approved the proposal. The IRP had approached the NCLT, Chandigarh Bench, for approval of the said proposal. The respondent/Bank was proposing to assign the debt to ARCs without obtaining permission

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## Issues and analysis

### Issue 1: Whether the respondent/Bank's actions of proposing a sale to ARCs while the petitioner's OTS offer …

**Ratio:** A party must act in good faith and with fairness, especially when dealing with proposals

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**Reasoning:** The court found it surprising that the respondent/Bank was proposing to assign the debt

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**Interpretation:** This issue involves the interpretation of principles of fairness and good faith

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**Application:** The court applied the principle of fairness by staying the sale of debt,

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## Parties

- **Judges:** M.S.Ramachandra…; SUKHVINDE…
- **Appellants:** Gaurav S…
- **Respondents:** M/s JVR Forging…; Indian…
- **Other parties:** Kohi…

## Timeline

- **2022-11-15 — Court Or…**: Court passed an order…
- **2022-11-25 — Notification…**: Notification dt.25.11.2022…

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