Case Note & Summary
The matter involved three restoration applications filed by personal guarantors of a principal borrower against Indian Bank. The appeals were initially dismissed on 16.10.2025 as infructuous due to a One Time Settlement (OTS) agreement reached between the parties. The appellants sought to revive the appeals after the bank rejected the OTS due to non-payment of the agreed installments. The court noted that the principal borrower was required to pay a total of Rs. 4.60 Crore, with specific deadlines for installments. The appellants had only paid Rs. 46 lakhs and failed to meet subsequent payment deadlines. The bank initiated bankruptcy proceedings against the appellants, leading to the current applications for restoration. The court emphasized that the liberty to revive the appeals was contingent upon the bank's failure to honor the settlement, not the appellants' failure to comply. The court ultimately dismissed the restoration applications, stating that the appellants could not benefit from their own non-compliance with the settlement terms.
Headnote
A) Insolvency Law - Restoration of Appeals - Conditions for Revival - Insolvency and Bankruptcy Code, 2016, Sections 95, 100 - The court held that the liberty to revive appeals was conditional upon the failure of the settlement due to the bank's fault, not the appellants'. The appellants' failure to comply with the One Time Settlement terms precluded them from reviving the appeals. (Paras 27-28).
Issue of Consideration
Whether the restoration applications for the appeals could be granted despite the failure to comply with the terms of the One Time Settlement.
Final Decision
The applications for revival of the appeals were dismissed as the appellants failed to comply with the terms of the One Time Settlement, and thus could not take advantage of their own wrong.
Law Points
- Restoration of appeals
- One Time Settlement
- Personal Guarantors
- Bankruptcy Proceedings
- Insolvency Resolution Process
