The case involves an appeal filed against an order dated 09.05.2024, which admitted a Section 7 application filed by Canara Bank. During the initial stage, the appellant showed a letter dated 08.05.2024, entertaining an OTS (One Time Settlement) offer, requiring the appellant to deposit Rs.45 crores in a no-lien account. The bank communicated this on 13.5.2024, and the appellant deposited Rs.45 crores. The appellant assured the Tribunal on 15.5.2024 that they would comply with the OTS sanctioned by the Bank. Consequently, the impugned order dated 09.05.2024 was stayed.
AJR Infra & Tolling Ltd. filed an appeal against an order dated 09.05.2024, which admitted a Section 7 application by Canara Bank. The appellant had received an OTS offer and was required to deposit Rs.45 crores. The appellant deposited Rs.45 crores after communication from the bank on 13.5.2024. The appellant assured the Tribunal on 15.5.2024 that they would comply with the OTS. The impugned order was stayed. The appellant's counsel submitted that the entire payment had been made in lieu of the OTS, and nothing was due to the Financial Creditor. This submission is crucial as it forms the basis for disposing of the appeal. The possibility of filing a Section 12A application was also considered.
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The case involves an appeal filed against an order dated 09.05.2024, which admitted a Section 7 application filed by Canara Bank. During the initial stage, the appellant showed a letter dated 08.05.2024, entertaining an OTS (One Time Settlement) offer, requiring the appellant to deposit Rs.45 crores in a no-lien account. The bank communicated this on 13.5.2024, and the appellant deposited Rs.45 crores. The appellant assured the Tribunal on 15.5.2024 that they would comply with the OTS sanctioned by the Bank. Consequently, the impugned order dated 09.05.2024 was stayed.
AJR Infra & Tolling Ltd. filed an appeal against an order dated 09.05.2024, which admitted a Section 7 application by Canara Bank. The appellant had received an OTS offer and was required to deposit Rs.45 crores. The appellant deposited Rs.45 crores after communication from the bank on 13.5.2024. The appellant assured the Tribunal on 15.5.2024 that they would comply with the OTS. The impugned order was stayed. The appellant's counsel submitted that the entire payment had been made in lieu of the OTS, and nothing was due to the Financial Creditor. This submission is crucial as it forms the basis for disposing of the appeal. The possibility of filing a Section 12A application was also considered.
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