National Company Law Appellate Tribunal
John Energy Limited vs Icici Bank Ltd on 18 March, 2024
Author: Ashok Bhushan
Bench: Ashok Bhushan
NATIONAL COMPANY LAW APPELLATE TRIBUNAL,
PRINCIPAL BENCH, NEW DELHI
Company Appeal (AT) (Insolvency) No. 558 of 2024
In the matter of:
John Energy Ltd. ....Appellant
Vs.
ICICI Bank Ltd. ...Respondent
For Appellant Mr. Navin Pahwa and Mr. Abhijeet Sinha, Sr.
Advocates with Mr. Mahesh Agarwal, Mr. Rohan
Talwar, Advocates.
For Respondent Mr. Mustafa Kachwala, Mr. Shantam Mandhyan,
Advocates.
Mr. Krishnendu Datta, Sr. Advocate.
WITH
Company Appeal (AT) (Insolvency) No. 559 of 2024
In the matter of:
John Energy Ltd. ....Appellant
Vs.
Axis Bank Ltd. ...Respondent
For Appellant Mr. Navin Pahwa, Sr. Advocate with Mr. Mahesh
Agarwal, Mr. Rohan Talwar, Advocates.
For Respondent Mr. Aayush Agarwala, Ms. Niyati Merchant,
Advocates.
ORDER
(Hybrid Mode) 18.03.2024: Heard Learned Counsel for the parties.
2. Company Appeal (AT) (Ins.) No.558 of 2024 has been filed against the order dated 12.03.2024 by which order the Adjudicating Authority who is hearing Section 7 application filed by ICICI Bank has directed that the matter to be listed on 19.03.2024 and parties are directed to file short synopsis not more than 2 to 3 pages before 19.03.2024.
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3. Company Appeal (AT) (Ins.) No.559 of 2024 has been filed against the order dated 12.03.2024 by which order the Adjudicating Authority who is hearing Section 7 application filed by Axis Bank Limited has directed that the matter to be listed on 19.03.2024 and parties are directed to file short synopsis not more than 2 to 3 pages before 19.03.2024.
4. Appellant has come up in these Appeals submitting that an Affidavit was filed before the Adjudicating Authority that Appellant has now as investor who is ready to pay the entire amount which was earlier arrived as per OTS dated 19.11.2023 for ICICI Bank of Rs.167 Crore and Rs.86 Crores as per OTS of Axis Bank dated 30.09.2023. Learned Counsel for the Appellant submits that the Appellant has earlier also filed an Appeal in this Tribunal on 05.02.2024 being Company Appeal (AT) (Insolvency) Nos.340 of 2024 and 339 of 2024 with respect to ICICI Bank and Axis Bank respectively where this Tribunal on 29.02.2024 passed following order:-
".............Having heard the aforesaid submissions and looking to the impugned order which has been impugned in the present appeals we are of the view that no fruitful purpose will be served by keeping the appeals pending. After having heard the submissions of the appellant, we are of the view that Adjudicating Authority may fix the application after 10th March, 2024.
With the above observations both the appeals are disposed off.
We make it clear that we have not expressed any opinion on the merits of the case."
5. Learned Counsel for the Appellant submitted that after the aforesaid order, on 29.02.2024 e-mail was sent to both the Banks- ICICI Bank and Axis Company Appeal (AT) (Insolvency) Nos. 558 & 559 of 2024 3 Bank requesting them to accept the OTS amount along with 12% interest. ICICI Bank did not respond whereas Axis Bank vide its e-mail dated 11.03.2024 communicated that OTS has come to an end and there is no question of permitting any deposit. It is submitted that the Appellant is ready to deposit the entire OTS amount which was earlier arrived along with 12% interest in the Court to show his bonafide. It is further submitted that the contract of thousands of crore which are with the Appellant shall automatically be terminated due to the clause in the contract if insolvency commences.
6. Learned Counsel for the ICICI Bank and Axis Bank have opposed the submissions of the Appellant and submits that the OTS which was earlier arrived has come to an end since Appellant failed to deposit the amount and the amount which was claimed in Section 7 application is much more than the OTS amount and banks have expressed that the offer made by the Appellant is not acceptable to the Banks.
7. Shri Krishnendu Datta, Learned Senior Counsel appearing for the investors submits that the investor is ready to deposit the amount of Rs.167 Crores and Rs.86 Crores within a week.
8. Shri Navin Pahwa, Learned Senior Counsel submits that the Appellant is ready to deposit the up-to-date interest @12% on the said principal amount.
9. We have considered the submissions of the Counsel for the parties and perused the record.
Company Appeal (AT) (Insolvency) Nos. 558 & 559 of 2024 4
10. Admittedly, Section 7 application is still pending before the Adjudicating Authority. From the facts which have been brought on the record, it is clear that the deposit could not be made by the Appellant as per our order dated 29.02.2024 by 10.03.2024 since letter dated 29.02.2024 could not be responded before the 10.03.2024. We are of the view that since Section 7 application is pending before the Adjudicating Authority, it is for the Adjudicating Authority to take a call on the submissions and offer made by the Appellant. However, in the ends of justice, we are of the view that the Appellant and the investors as submitted before the Court may deposit the amount of Rs.167 Crores along with 12% interest and Rs.87 Crores plus 12% interest before the NCLT within 10 days as prayed by way of FDR in favour of Registrar, NCLT. If the said deposit is made or not made, the Adjudicating Authority shall take appropriate decision on Section 7 application after hearing both the parties.
11. In view of the aforesaid, we see no reason to keep the Appeals pending. Both the Appeals are disposed of accordingly. We make it clear that we have not expressed any final opinion on the merits of the case and contentions of either of the parties.
[Justice Ashok Bhushan] Chairperson [Barun Mitra] Member (Technical) [Arun Baroka] Member (Technical) Anjali/nn Company Appeal (AT) (Insolvency) Nos. 558 & 559 of 2024