# In the matter of Rishabh Singhvi Vs Canara Bank

> NCLAT judgment dated 2024-11-07. Citation: TCN-2024-NCLAT-00117. The appeal was filed against the order dated 11.06.2024 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 7 Nov 2024
- **Citation:** TCN-2024-NCLAT-00117
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rishabh-singhvi-vs-canara-bank-e784076a

## Summary

### Background

The appeal was filed against the order dated 11.06.2024 passed by the National Company Law Tribunal, New Delhi Bench-III, which admitted the Section 7 application filed by Canara Bank. The appellant challenged the order, arguing that an OTS (One Time Settlement) proposal with Canara Bank was already under consideration. The appellant filed I.A. No. 7366 of 2024, bringing the OTS issued by Canara Bank on record. There are only three Financial Creditors: Canara Bank, HDFC Bank, and State Bank of India.

## Facts

The National Company Law Tribunal (NCLT), New Delhi Bench-III, admitted a Section 7 application filed by Canara Bank on 11.06.2024, leading to an appeal. The appellant, Rishabh Singhvi, challenged the NCLT's order, arguing that a One Time Settlement (OTS) proposal with Canara Bank was already under consideration. The appellant filed I.A. No. 7366 of 2024 to bring the OTS on record. The financial creditors involved are Canara Bank, HDFC Bank, and State Bank of India. The IRP stated that no other claims were received except from an operational creditor. All financial creditors accepted the OTS, and part of the payment was made, with the remainder due by 07.01.2025. Post-dated cheques and a demand draft totaling Rs. 77.66 Crores were provided. The Committee of Creditors

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) should have admitted the Section 7 application filed by …

**Ratio:** The principle is that if a settlement is actively being pursued and is likely to resolve

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**Reasoning:** The court reasoned that since an OTS proposal was under consideration and all financial

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**Interpretation:** This interprets the IBC to allow for settlements and compromises between

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**Application:** The court applied this principle to the facts by noting that the OTS was

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Rishabh S…
- **Respondents:** International…
- **Advocates:** Swapnil…; Vaibhav Men…; +6 more

## Timeline

- **2024-06-11 — NCLT Ord…**: National Company Law Tribunal, New Delhi Bench-III, passed an order admitting the Section…
- **2024-11-07 — NCLAT Or…**: NCLAT disposed of the appeal, closing the…

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