# In the matter of Manoj Kumar Jain vs. State Bank of India & Anr. Company Appeal (AT) (Insolvency) No. 932 of 2022

> NCLAT judgment dated 2023-04-18. Citation: TCN-2023-NCLAT-00616. The appeal was filed against the order dated 18.07.2022, by which the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLAT-00616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manoj-kumar-jain-vs-state-bank-of-india-anr-company-appeal-aac6d58e

## Summary

### Background

The appeal was filed against the order dated 18.07.2022, by which the Adjudicating Authority admitted the Section 7 application filed by the State Bank of India (SBI). The Appellant had taken financial assistance from a consortium of banks, with the Central Bank of India as the lead bank. The consortium had entered into a One Time Settlement (OTS) with the Appellant, but SBI had not accepted the OTS. The Appellant was taking steps to settle the dues of SBI. An IA No. 1566/2023 was filed, bringing on record the OTS order issued by SBI dated 12.04.2023, where the bank accepted the OTS offer of Rs. 81 crore given by the Appellant.

## Facts

The State Bank of India (SBI) filed an application under Section 7, which was admitted by the Adjudicating Authority on 18.07.2022. The Appellant, Manoj Kumar Jain, had taken financial assistance from a consortium of banks, with the Central Bank of India as the lead bank. The consortium had entered into a One Time Settlement (OTS) with the Appellant, but SBI had not accepted the OTS. The Appellant was taking steps to settle the dues of SBI. An IA No. 1566/2023 was filed, bringing on record the OTS order issued by SBI dated 12.04.2023, where the bank accepted the OTS offer of Rs. 81 crore given by the Appellant. IDBI bank dues have not yet been settled. The order dated 18.07.2022 was set aside, and the CIRP proceedings were closed.

## Issues and analysis

### Issue 1: Whether the order dated 18.07.2022 admitting the Section 7 application should be set aside in light …

**Ratio:** The court has the power to set aside an order if it finds that the circumstances warrant

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**Reasoning:** The court considered the fact that SBI had issued an OTS order dated 12.04.2023,

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**Interpretation:** The court interpreted the OTS order as a significant development that warranted

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**Application:** Given the OTS order issued by SBI, the court applied the principle that a

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Manoj Kuma…
- **Respondents:** State Bank of…

## Timeline

- **2022-07-18 — Order by Adjudicating…**: The Adjudicating Authority admitted the Section 7 application filed by the State Bank of…
- **2022-08-05 — Tribunal…**: The Tribunal passed an order noting the submissions of the Appellant's counsel regarding…

## 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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