The Appellant filed an application under Section 12A with Form F before the Adjudicating Authority. The Appellant and the Financial Creditor had agreed to a settlement and part payment was made. The Adjudicating Authority rejected the application under Section 12A, observing that the settlement lacked bonafide. The Appellant argues that these observations were uncalled for since the Financial Creditor agreed to the settlement and raised no objections. The Committee of Creditors (CoC) was not constituted when the Adjudicating Authority passed the order.
Anil Chhabria, the Appellant, filed an application under Section 12A with Form F before the Adjudicating Authority seeking a settlement. Both the Appellant and the Financial Creditor, SBICAP Trustee Company Ltd., had agreed to the settlement, and part payment was made. However, the Adjudicating Authority rejected the application, stating that the settlement lacked bonafide. The Appellant contends that the Financial Creditor had agreed to the settlement without objection, and the CoC was not yet constituted when the order was passed. The claims received by the Resolution Professional were not of such relevance as to reject the settlement between the parties.
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The Appellant filed an application under Section 12A with Form F before the Adjudicating Authority. The Appellant and the Financial Creditor had agreed to a settlement and part payment was made. The Adjudicating Authority rejected the application under Section 12A, observing that the settlement lacked bonafide. The Appellant argues that these observations were uncalled for since the Financial Creditor agreed to the settlement and raised no objections. The Committee of Creditors (CoC) was not constituted when the Adjudicating Authority passed the order.
Anil Chhabria, the Appellant, filed an application under Section 12A with Form F before the Adjudicating Authority seeking a settlement. Both the Appellant and the Financial Creditor, SBICAP Trustee Company Ltd., had agreed to the settlement, and part payment was made. However, the Adjudicating Authority rejected the application, stating that the settlement lacked bonafide. The Appellant contends that the Financial Creditor had agreed to the settlement without objection, and the CoC was not yet constituted when the order was passed. The claims received by the Resolution Professional were not of such relevance as to reject the settlement between the parties.
Further proceedings in…
Issue notice.…