NCLAT directs to pay the Amount Deposited to the Court as per Consent Term to Financial Creditor [Read Order]
NCLAT directs to pay the Amount Deposited to the Court – Amount Deposited to the Court as per Consent Term to Financial Creditor – NCLAT – Amount Deposited – Court – Financial Creditor – Taxscan
NCLAT directs to pay the Amount Deposited to the Court – Amount Deposited to the Court as per Consent Term to Financial Creditor – NCLAT – Amount Deposited – Court – Financial Creditor – Taxscan
The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) directed to pay the amount deposited to the court as per consent terms to the financial creditor.
Bhagwandas R. Bhattad, the appellant challenged the order by which Adjudicating Authority has admitted Section 7 application on IA No. 1621/2023. Section 7 application was filed by the Financial Creditor for default of an amount of Rs. 1,15,88,470/-.
In Section 7 proceedings, a Consent Terms was entered between the parties on 30.06.2021 under which the parties settled their issues and certain payments were required to be made by the Corporate Debtor. There was a breach in the Consent Terms hence, an IA was filed to revive the Section 7 application which has been revived by the order dated 14.02.2023. After the revival of the application by the Impugned Order, the Section 7 application has been admitted.
The Appellant submitted that when the Appeal was taken up, the Court passed an order to deposit the Appellant an amount of Rs. 1,71,80,263/- which according to the Appellant has already been deposited. Further stated that the entire Principal Amount has been deposited in +interest, there is no purpose for continuing the CIRP any further.
A two-member bench comprising Justice Ashok Bhushan, Chairperson and Mr Naresh Salecha, Member (Technical) held that “in the ends of justice be served in directing that the said amount deposited in the court is paid to the Financial Creditor. The Principal Amount + Interest having been paid, we see no purpose in continuing the CIRP against the Corporate Debtor. In so far as the submission of the Learned Counsel for the Financial Creditor that Consent Terms, the entire amount of Consent Terms have not been paid, the Financial Creditor is at liberty to take such proceedings as permissible in law to recover the balance amount. “
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
