This is an appeal against the order dated 04.12.2023 passed by the Adjudicating Authority, which admitted a Section 7 application filed by Union Bank of India. The bank alleged debt and default. The Adjudicating Authority reserved the order on 15.09.2023. After the order was reserved, an OTS (One Time Settlement) was sanctioned by the bank on 04.10.2023. This was brought to the notice of the Adjudicating Authority by another shareholder of the Corporate Debtor, seeking deferment of the pronouncement. However, the Adjudicating Authority pronounced the order admitting Section 7 application.
Union Bank of India filed a Section 7 application alleging debt and default. The Adjudicating Authority reserved its order on 15.09.2023. Subsequently, on 04.10.2023, the bank sanctioned an OTS. This OTS sanction was brought to the Adjudicating Authority's notice by a shareholder of the Corporate Debtor, seeking deferment of the order's pronouncement. Despite this, the Adjudicating Authority admitted the Section 7 application on 04.12.2023. The appellant challenged this order, arguing that the OTS sanction negated the basis for the Section 7 application. The bank's counsel did not dispute the OTS sanction. The key fact is the OTS sanction after the reservation of the order but before its pronouncement, which the court deemed significant enough to set aside the
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The Adjudicating…
The Union Bank…
This is an appeal against the order dated 04.12.2023 passed by the Adjudicating Authority, which admitted a Section 7 application filed by Union Bank of India. The bank alleged debt and default. The Adjudicating Authority reserved the order on 15.09.2023. After the order was reserved, an OTS (One Time Settlement) was sanctioned by the bank on 04.10.2023. This was brought to the notice of the Adjudicating Authority by another shareholder of the Corporate Debtor, seeking deferment of the pronouncement. However, the Adjudicating Authority pronounced the order admitting Section 7 application.
Union Bank of India filed a Section 7 application alleging debt and default. The Adjudicating Authority reserved its order on 15.09.2023. Subsequently, on 04.10.2023, the bank sanctioned an OTS. This OTS sanction was brought to the Adjudicating Authority's notice by a shareholder of the Corporate Debtor, seeking deferment of the order's pronouncement. Despite this, the Adjudicating Authority admitted the Section 7 application on 04.12.2023. The appellant challenged this order, arguing that the OTS sanction negated the basis for the Section 7 application. The bank's counsel did not dispute the OTS sanction. The key fact is the OTS sanction after the reservation of the order but before its pronouncement, which the court deemed significant enough to set aside the
…The Adjudicating…
The Union Bank…