# In the matter of Kishan Lal Daga vs. Canara Bank & Anr.

> NCLAT judgment dated 2023-08-16. Citation: TCN-2023-NCLAT-00282. The appeal was filed against the order passed by the Adjudicating Authority on 19.05.2023,…

- **Court:** NCLAT
- **Order date:** 16 Aug 2023
- **Citation:** TCN-2023-NCLAT-00282
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kishan-lal-daga-vs-canara-bank-anr-64ea571a

## Summary

### Background

The appeal was filed against the order passed by the Adjudicating Authority on 19.05.2023, which admitted a Section 7 application filed by Canara Bank. The appellant's counsel stated on 24.05.2023 that negotiations with the bank for settlement were ongoing, and a concrete proposal would be submitted. The bank's counsel indicated that the last date for receiving the claim was 02.06.2023. Subsequent order dated 01.06.2023 stayed the constitution of the CoC. An I.A. No. 3733 of 2023 was filed by the Appellant bringing on record the letter of Canara Bank dated 11.08.2023 informing that certifying their payments towards OTS sanction permitted as per order of the Board dated 23.06.2023 has been fully received.

## Facts

Canara Bank filed a Section 7 application, which was admitted by the Adjudicating Authority on 19.05.2023. The Appellant, Kishan Lal Daga, initiated negotiations with Canara Bank for a settlement. The Appellant was expected to submit a concrete proposal to the bank. The bank indicated that the last date for receiving the claim was 02.06.2023. The constitution of the Committee of Creditors (CoC) was stayed by a subsequent order dated 01.06.2023. The Appellant filed I.A. No. 3733 of 2023, bringing on record a letter from Canara Bank dated 11.08.2023, confirming that payments towards the OTS sanction permitted as per the Board order dated 23.06.2023 had been fully received. Canara Bank's counsel confirmed that the bank had received the entire amount as per the OTS

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## Issues and analysis

### Issue 1: Whether the CIRP proceedings should be continued given that the bank has received the entire amount …

**Ratio:** When the debt for which CIRP was initiated has been fully satisfied, there is no reason

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**Reasoning:** The court reasoned that since Canara Bank, the financial creditor, had received the

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**Interpretation:** The interpretation is that CIRP is a mechanism for debt resolution, and once

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**Application:** Since Canara Bank confirmed receiving the entire amount, the court applied the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Kishan La…
- **Respondents:** Canara Bank…
- **Advocates:** Abhijeet…; Kanika…; +3 more

## Timeline

- **2023-05-19 — Adjudicating Authority…**: Adjudicating Authority admitted Section…
- **2023-05-24 — Appellant's Counsel…**: Appellant's counsel stated negotiations with the bank for settlement were ongoing and a…

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