# In the matter of Bhawanishankar Harishchandra Sharma vs. Canara Bank & Anr.

> NCLAT judgment dated 2023-08-24. Citation: TCN-2023-NCLAT-00250. The case involves an appeal against an order passed by the Adjudicating Authority on…

- **Court:** NCLAT
- **Order date:** 24 Aug 2023
- **Citation:** TCN-2023-NCLAT-00250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhawanishankar-harishchandra-sharma-vs-canara-bank-anr-a907ad45

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority on 23.11.2022, which admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Canara Bank. The appellant challenged the order dated 14.11.2022 in the Bombay High Court, and a Special Leave Petition (SLP) is pending before the Supreme Court. The appellant also submitted a Scheme of Arrangement under Section 230 of the Companies Act regarding the Corporate Debtor, Supreme Infrastructure India Ltd., in which Canara Bank is a Financial Creditor. The appellant sought to file documents pertaining to the Scheme before the Adjudicating Authority.

## Facts

Bhawanishankar Harishchandra Sharma filed an appeal against the Adjudicating Authority's order dated 23.11.2022, which admitted Canara Bank's Section 7 application. The appellant had challenged an earlier order dated 14.11.2022 in the Bombay High Court, with a pending SLP before the Supreme Court. A Scheme of Arrangement under Section 230 of the Companies Act was submitted concerning Supreme Infrastructure India Ltd., the Corporate Debtor, where Canara Bank is a Financial Creditor. The appellant sought to present documents related to the Scheme before the Adjudicating Authority. The Scheme's first motion was directed, with voting expected in December 2022. Canara Bank was offered assets of the Corporate Debtor in the Scheme. Canara Bank later accepted a One Time

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dated 23.11.2022 admitting the Section 7 application …

**Ratio:** The acceptance of a One Time Settlement (OTS) by the financial creditor (Canara Bank)

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**Reasoning:** The court reasoned that since Canara Bank, the original applicant under Section 7, had

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**Interpretation:** The acceptance of an OTS indicates that the financial creditor has found a

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**Application:** In this case, Canara Bank's acceptance of the OTS from Supreme Housing &

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Bhawanishankar…
- **Respondents:** Supreme Housing &…; Canara…

## Timeline

- **2022-11-14 — Order by Adjudicating…**: Order passed by the Adjudicating Authority…
- **2022-11-23 — Order by Adjudicating…**: The Adjudicating Authority admitted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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