# In the matter of AJR Infra And Tolling Limited vs. Canara Bank & Anr.

> NCLAT judgment dated 2025-01-10. Citation: TCN-2025-NCLAT-00270. The appeal was filed against an impugned order dated 09.05.2024, which admitted a Section 7…

- **Court:** NCLAT
- **Order date:** 10 Jan 2025
- **Citation:** TCN-2025-NCLAT-00270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ajr-infra-and-tolling-limited-vs-canara-bank-anr-294fdcfe

## Summary

### Background

The appeal was filed against an impugned order dated 09.05.2024, which admitted a Section 7 application filed by Canara Bank. The appellant had shown a letter dated 08.05.2024 entertaining an OTS offer, requiring a deposit of 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 of compliance with the OTS sanctioned by the Bank, leading to a stay of the impugned order dated 09.05.2024.

## Facts

AJR Infra & Tolling Ltd. filed an appeal against an order dated 09.05.2024 admitting a Section 7 application by Canara Bank. The appellant had presented a letter dated 08.05.2024 indicating an OTS offer, requiring a deposit of Rs.45 crores. The bank communicated this on 13.05.2024, and the appellant deposited Rs.45 crores. On 15.05.2024, the appellant assured the Tribunal of compliance with the OTS, leading to a stay of the impugned order. The appellant's counsel submitted that the entire payment had been made in lieu of the OTS. This submission was crucial to the court's decision to dispose of the appeal.

## Issues and analysis

### Issue 1: Whether the appeal against the order admitting Section 7 application should be kept pending given …

**Ratio:** An appeal need not be kept pending if the appellant has complied with the terms of a

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**Reasoning:** The court reasoned that since the appellant had made the entire payment in lieu of the

…

**Interpretation:** This interprets the IBC in a way that encourages settlement and resolution of

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**Application:** The appellant's compliance with the OTS, including the deposit of Rs.45 crores,

…

## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** AJR Infra &…
- **Respondents:** Canara…
- **Advocates:** Sakshi…; Abhirup Da…; +3 more

## Timeline

- **2024-05-08 — OTS Offer…**: Appellant showed a letter…
- **2024-05-09 — Impugned…**: Order admitting Section 7…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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