Investors Ordered to Deposit One Time Settlement Amounts With Interest Within 10 Days for Section 7 Decision.

The NCLAT disposed of Company Appeal (AT) (Ins.) Nos. 558 and 559 of 2024, directing the Appellant and investors to deposit the specified One Time Settlement (OTS) amounts with interest to the NCLT within 10 days via Fixed Deposit Receipt. The Adjudicating Authority is to decide on the Section 7 applications after considering the submissions and offers. The Appeals were resolved without a final opinion on the merits or contentions.

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Issues Involved:
The judgment involves Company Appeal (AT) (Ins.) No.558 of 2024 and Company Appeal (AT) (Ins.) No.559 of 2024 filed against the orders dated 12.03.2024 by the Adjudicating Authority hearing Section 7 applications filed by ICICI Bank and Axis Bank Limited, respectively.

Company Appeal (AT) (Ins.) No.558 of 2024:
The Appellant submitted an Affidavit stating readiness to pay the entire amount as per earlier arrived One Time Settlement (OTS) with ICICI Bank and Axis Bank Limited. The Tribunal had disposed of earlier appeals related to these banks without expressing any opinion on the merits of the case. The Appellant offered to deposit the OTS amount with interest, but the banks opposed, claiming the OTS had ended due to non-payment. The investor also expressed willingness to deposit the amounts.

Company Appeal (AT) (Ins.) No.559 of 2024:
Similar to the first appeal, the Appellant sought to pay the OTS amount with interest to Axis Bank Limited, which was contested by the bank. The investor also indicated readiness to deposit the specified amounts within a week.

The Tribunal considered the submissions and records, noting the pending Section 7 application before the Adjudicating Authority. It acknowledged the failure to meet the deposit deadline set in the previous order. The Tribunal ruled that the Adjudicating Authority should decide on the submissions and offers made by the Appellant. In the interest of justice, the Appellant and investors were directed to deposit the specified amounts within 10 days to the National Company Law Tribunal (NCLT) by way of Fixed Deposit Receipt (FDR) in favor of the Registrar, NCLT. The Adjudicating Authority would then make a decision on the Section 7 application after hearing both parties.

In conclusion, the Appeals were disposed of without expressing a final opinion on the case's merits or the contentions of the parties involved.

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