2026 (2) TMI 786

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....or R-1. Ms. Anjali Sharma, Ms. Thanglunkim, Mr. Gaikhuanlung, Advocates for R-2. ORDER Per: Justice Rakesh Kumar Jain: This appeal is against the order dated 18.02.2025 passed by the NCLT Mumbai Bench by which an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code'), bearing CP (IB) No. 1902 of 2019 by Union Bank of India against M/s Privilege Health Care Services Pvt. Ltd. for the resolution of an amount of Rs. 30.19,13,435.20/- as on 31.03.2019 has been admitted. 2. The brief facts of this care that the Financial Creditor sanctioned a term loan facility of Rs. 28,00,00,000/- and import/inland LC/buyers credit as sublimit of Rs. 77,00,000/- to the CD. The CD executed loan and securit....

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.... CIRP on 04.12.2019. 6. The CD approached the FC vide its letter dated 29.04.2020 to consider the OTS Proposal once again. The OTS proposal dated 07.07.2020 and 12.08.2020 were accepted by the FC and in view thereof, in the 15th CoC meeting of the CD held on 19.06.2020, it was decided to withdraw the petition filed under Section 7 of the Code in terms of Section 12A of the Code which was approved by 100% voting share. 7. The RP filed an application bearing I.A No. 1181 of 2020 under Section 12A of the Code. The said application was allowed on 15.09.2020 and the petition was disposed of as withdrawn. 8. It is alleged that CD had issued post-dated cheques to the FC in terms of the OTS dated 07.07.2020 and 12.08.2020 and vide letter d....

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....bmitted that despite its efforts to pay the amount as per OTS letters, the Corporate Debtor has failed to repay the same due to financial difficulties. 9. It is an admitted position that the Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) vide order dated 04.12.2019 in CP. 1902/ 2019. Thereafter the Company Petition was withdrawn by the Financial Creditor on the strength of the OTS proposals dated 07.07.2020 & 12.08.2020. 10. It is further noted that while accepting the OTS Scheme, the Financial Creditor has mentioned in the acceptance letter dated 07.07.2020 as follows: "6. In case of delay/ default in payment as per the OTS terms and conditions, the concession/ OTS sanctione....

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....ted as IRP besides imposing the mortarium, it is contended that the Adjudicating Authority had no power to restore the petition without there being revival clause. 14. We have heard Counsel for the Appellant in detail and perused the record with their able assistance. 15. In our opinion, it is classic case of fraud played by the CD upon the FC when it made the financial creditor believe that it is ready and willing to settle the dispute on a particular amount which was accepted by the FC and filed the application under Section 12A of the Code for withdrawal of the petition but once the petition was withdrawn, the post-dated cheques given by the CD were all bounced because of the insufficient funds and the settlement fell flat on the g....