Case Note & Summary
The National Company Law Appellate Tribunal dealt with 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 following a One Time Settlement (OTS) agreement between the principal borrower and the bank. The appellants sought to revive the appeals after the bank rejected the OTS due to non-payment of 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, leading to the bank's application for bankruptcy proceedings against them. The court emphasized that the liberty to revive the appeals was granted only if the settlement failed due to the bank's fault, not the appellants'. Since the appellants were at fault for not complying with the OTS, their applications for revival were dismissed, affirming that they could not benefit from their own non-compliance. The decision was made after considering the submissions from both parties and reviewing the relevant provisions of the Insolvency and Bankruptcy Code. The applications were ultimately dismissed as lacking substance.
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 contingent upon the failure of the settlement due to the bank's fault, not the appellants'. The appellants failed to comply with the OTS terms, thus their applications for revival were dismissed. (Paras 27-28).
Issue of Consideration
Whether the restoration applications for the appeals can 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
