# In the matter of Dr. Yartagadda Krishna Mohan vs. Committee of Creditors & Ors.

> NCLAT judgment dated 2024-12-24. Citation: TCN-2024-NCLAT-00001. The case involves a Company Appeal against an order dismissing an application for a One-Time…

- **Court:** NCLAT
- **Order date:** 24 Dec 2024
- **Citation:** TCN-2024-NCLAT-00001
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dr-yartagadda-krishna-mohan-vs-committee-of-creditors-ors-70cecfa5

## Summary

### Background

The case involves a Company Appeal against an order dismissing an application for a One-Time Settlement (OTS) proposal. The Corporate Debtor had entered into a term loan agreement with a consortium of banks led by the State Bank of India to set up a 5-Star Hotel. The Corporate Debtor signed an operation-cum-management agreement with the Intercontinental Hotel Group (Holiday Inn) for the project in Tirupati. A credit of Rs. 113.70 Crore was made available to the Corporate Debtor. Subsequently, the Corporate Debtor's account was classified as a non-performing asset, and CIRP proceedings were initiated by the NCLT. The Appellant, acting as a Personal Guarantor, submitted multiple OTS proposals, which were rejected. Meanwhile, the NCLT approved a Resolution Plan submitted

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## Facts

Dr. Yartagadda Krishna Mohan, the Appellant, filed a Company Appeal against the Impugned Order dated 12.09.2024. The Corporate Debtor entered into a term loan agreement with a consortium of Banks, led by the State Bank of India, for setting up a 5-Star Hotel and signed an operation-cum-management agreement with the Intercontinental Hotel Group (Holiday Inn) for the project in Tirupati. A credit of Rs. 113.70 Crore was made available to the Corporate Debtor. The Corporate Debtor's account was later classified as a non-performing asset, and CIRP proceedings were initiated by the NCLT. The Appellant, in the capacity of a Personal Guarantor, submitted an OTS proposal of Rs. 80 Crores to the Financial Creditor on 09.12.2022, which was rejected. He then submitted a revised

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## Issues and analysis

### Issue 1: Whether the NCLT was correct in dismissing the application for an OTS proposal after the Resolution …

**Ratio:** Once a Resolution Plan has been approved, an OTS proposal cannot be considered as it

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**Reasoning:** The court reasoned that allowing an OTS proposal after the approval of a Resolution Plan

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**Interpretation:** The interpretation is that the approval of a Resolution Plan creates a binding

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**Application:** In this case, the NCLT's decision to dismiss the application for an OTS

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Yartagadda…
- **Respondents:** Committee of…

## Timeline

- **2022-12-09 — First OTS P…**: Appellant submitted an OTS proposal of…
- **2023-01-30 — Revised OTS P…**: Appellant submitted a revised…

## 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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