2026 (2) TMI 28

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. Esha Sharma, Advocates for Intervener/ J.C. Flower. ORDER Heard counsel for the appellant. 2. This appeal has been filed against the order dated 12.12.2025 by which Section 7 application filed by the IDBI Bank Ltd. has been admitted. IDBI Bank has filed an application under Section 7 for an amount of Rs. 50,22,31,631/- till 31.03.2024; date of default was mentioned as 29.09.2019. In the Section 7 application notices were issued and application was heard and by the impugned order dated 12.12.2025 Section 7 application has been admitted. During pendency of the proceeding under Section 7 application was heard on 19.11.2025 and the order reserved. During pendency of Section 7 application, an OTS was entered between the parties and s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uance of the order dated 12.12.2025." 3. Again the matter was taken on 05.01.2026 where the counsel for respondent submitted that the payment has not been made as noticed in earlier order interim order was not extended. 4. Ld. Counsel for the appellant challenging the order submits that till the OTS continued to operate i.e; till 29.12.2025 there was no default on the part of the corporate debtor to admit Section 7 application. Ld. Counsel for the appellant has referred to terms and conditions of the OTS and submits that in view of the aforesaid terms and conditions Adjudicating Authority ought not to have admitted Section 7 application and there being no default on the part of the corporate debtor, Section 7 application could not hav....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xure-I. 1 Sanction Amount Rs.18.24 Crore   2 Payment Schedule Particulars Amount (Rs. crore)     Upfront payment (already paid as on September 25, 2025) 2.90     Balance amount shall be payable in 3 equal monthly instalments within 90 days from the date of LOA. 15.34     Total 18.24 3 Payment of interest On OTS amount as per payment schedule - Nil On delayed payment - @1 Yr MCLR+2% as on COD. Acceptance of delayed payment shall be at the absolute discretion of IDBI Bank. In case of default in adhering to the terms and conditions of OTS, IDBI Bank shall have right to revoke the OTS package and restore the original liabilities.   ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... action proceedings and enforcement actions during compliance of OTS/NS terms. However, in the event of default/ delay, the parties are entitled to revive or continue the legal proceedings enforcement actions." The above clause cannot come into the aid of the corporate debtor where it was clearly mentioned that in event the default/ delay, the party are entitled to revive and continue the legal proceedings. The present is not a case where borrower has taken any legal action or enforcement action during compliance of the OTS. 9. Present was a case where Section 7 application was initiated much before, in the year 2024 and it was not the bank which was taking any legal actions against the borrower. Moreso, when the second line of the cl....