# In the matter of Sudarshan Das Mundhra (Suspended Director of
Simplex Projects Ltd.)
Vs.
State Bank of India & Anr. Comp. App. (AT) (Ins.) No. 519 of 2022

> NCLAT judgment dated 2022-07-19. Citation: TCN-2022-NCLAT-00347. The case involves an appeal against the order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 19 Jul 2022
- **Citation:** TCN-2022-NCLAT-00347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudarshan-das-mundhra-suspended-director-of-simplex-projects-ltd-vs-state-bank-o-5f73f641

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, which admitted a Section 7 application filed by the State Bank of India. The appellant, Sudarshan Das Mundhra, had proposed a One Time Settlement (OTS) with the bank, and some amounts were deposited. However, the appellant failed to deposit the full amount as per the OTS terms. Consequently, the Insolvency Resolution Process (CIRP) was initiated.

## Facts

Sudarshan Das Mundhra, the appellant, proposed a One Time Settlement (OTS) to the State Bank of India. The bank approved the OTS, and the appellant deposited some amounts. However, the appellant failed to deposit the full amount within the stipulated time. The bank initiated the Corporate Insolvency Resolution Process (CIRP). The appellant deposited Rs. 5 Crores following an interim order, but failed to deposit the remaining Rs. 8.5 Crores. The bank accepted some amount even after the expiry of the period. The Adjudicating Authority admitted Section 7 application filed by the State Bank of India. The bank confirmed that the Rs. 5 Crores deposited by the appellant was kept in a no-lien account and was ready to be refunded.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by the State …

**Ratio:** The Adjudicating Authority has the right to admit Section 7 Application when there is a

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**Reasoning:** The court found no error in the Adjudicating Authority's decision to admit the Section 7

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**Interpretation:** Section 7 of the IBC allows financial creditors to initiate CIRP against a

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**Application:** In this case, the appellant failed to adhere to the terms of the OTS and could

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Sudarshan Das…
- **Respondents:** Simplex Projects…; State Bank of…

## Timeline

- **2022-04-27 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, passed an…
- **2022-05-17 — Interim…**: The court entertained the appeal and passed an interim order, during which the Appellant…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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