# In the matter of ARJ Infra & Tolling Ltd Vs Canara Bank

> NCLAT judgment dated 2024-05-16. Citation: TCN-2024-NCLAT-00428. The case involves an appeal against an order dated 09.05.2024, which admitted a Section 7…

- **Court:** NCLAT
- **Order date:** 16 May 2024
- **Citation:** TCN-2024-NCLAT-00428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/arj-infra-tolling-ltd-vs-canara-bank-02fbe782

## Summary

### Background

The case involves an appeal against an order dated 09.05.2024, which admitted a Section 7 application filed by Canara Bank. The appellant, ARJ Infra & Tolling Ltd., claims to have been in the process of complying with an OTS (One-Time Settlement) offer from the bank, having deposited Rs. 45 Crores. The appellant requested a stay on the proceedings under Section 7, arguing that they are ready to comply with the OTS sanctioned by the bank.

## Facts

ARJ Infra & Tolling Ltd. filed an appeal against an order dated 09.05.2024, which admitted a Section 7 application filed by Canara Bank. The appellant claimed to have received an OTS offer from the bank on 08.05.2024 and deposited Rs. 45 Crores towards the OTS. The appellant argued that they are ready to comply with the OTS sanctioned by the bank and requested a stay on the proceedings under Section 7. Canara Bank communicated details of the bank account on 13.05.2024. The appellant has already deposited Rs.45 Crores. The key fact is the ongoing OTS process and the appellant's deposit, which influenced the court's decision to stay the order admitting the Section 7 application.

## Issues and analysis

### Issue 1: Whether further steps should be taken in pursuance of the impugned order dated 09.05.2024, …

**Ratio:** The legal principle applied here is the court's discretion to stay proceedings when there

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**Reasoning:** The court reasoned that since the appellant had already deposited Rs. 45 Crores towards

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**Interpretation:** This involves interpreting the court's power to stay proceedings in light of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** ARJ Infra &…
- **Respondents:** Canara…
- **Advocates:** Abhijeet…; Neel Ka…; +7 more

## Timeline

- **2024-05-08 — OTS Offe…**: Canara Bank issued a letter…
- **2024-05-09 — Order Admitting Section…**: Order passed admitting Section 7…

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