# In the matter of Sandeep Jindal Vs Corporation Bank (now Union Bank of India)

> NCLAT judgment dated 2024-05-16. Citation: TCN-2024-NCLAT-00430. The case involves an appeal against the admission of a Section 7 application under the…

- **Court:** NCLAT
- **Order date:** 16 May 2024
- **Citation:** TCN-2024-NCLAT-00430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sandeep-jindal-vs-corporation-bank-10eac010

## Summary

### Background

The case involves an appeal against the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The appellant claims to have settled more than 80% of the debt with the financial creditor through an OTS (One-Time Settlement) which is being complied with. The financial creditor has also filed an IA in the Section 7 application. The appellant entered into an OTS sanctioned on 14.11.2023, involving a payment of Rs.8 Crore, with Rs.5 Crore to be paid by the borrower and Rs.3 Crore by the guarantor. The appellant has made payments of Rs.4 Crores till 18.04.2024 and is making further payments. The appellant requested an extension of time until 30.06.2024 to complete the payment, but no communication was received from the Union Bank of India. The

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## Facts

Sandeep Jindal (Appellant) is involved in a Company Appeal (AT) (Insolvency) No. 973 of 2024 against Corporation Bank (Now Union Bank of India) & Anr. (Respondents). The Appellant claims to have settled more than 80% of the debt with the Financial Creditor through an OTS. The Financial Creditor has filed an IA in the Section 7 application. An OTS was sanctioned on 14.11.2023 for Rs.8 Crore, with Rs.5 Crore to be paid by the borrower and Rs.3 Crore by the guarantor. The Appellant has made payments of Rs.4 Crores till 18.04.2024 and is making further payments. A request for extension of time till 30.06.2024 was made to the Financial Creditor, but no communication was received from the Union Bank of India. The Adjudicating Authority admitted the Section 7 application.

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## Issues and analysis

### Issue 1: Whether the Appellant should be granted an opportunity to complete the payment of the settled …

**Ratio:** The principle of natural justice and the need to promote settlement in insolvency matters

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**Reasoning:** The court reasoned that since the appellant had already settled a significant portion of

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**Interpretation:** This issue involves interpreting the balance between the rights of the

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**Application:** The court applied this principle by directing that the appellant be given until

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sandeep J…
- **Respondents:** Corporation Bank…

## Timeline

- **2023-11-14 — OTS Sanct…**: OTS sanctioned for Rs.8 Crore, with Rs.5 Crore to be paid by the borrower and Rs.3 Crore…
- **2024-04-18 — Payment…**: Appellant made payment of…

## 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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