JUDGEMENT

ASHOK BHUSHAN, J. This Appeal by a Suspended Director of the Corporate Debtor has been filed challenging order dated 10.11.2023 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-IV admitting Section 7 application filed by the State Bank of India. The Appellant aggrieved by admission of Section 7 application has come up in this Appeal.

Brief facts of the case necessary to be noticed for deciding this appeal are:

(i) The Corporate Debtor - Advantage Overseas Pvt. Ltd. was extended a financial facility by the State Bank of India. Initially a facility of Rs.10 Crores was granted on 15.03.2013. The Board of Directors of the Corporate Debtor resolved to avail the initial facility and to create an equitable mortgage over certain properties of the Corporate Debtor.

(ii) A Loan-cum-Hypothecation Agreement dated 23.03.2013 was executed between the State Bank of India and the Corporate Debtor.

(iii) A Guarantee Agreement was also executed in favour of State Bank of India by the Personal Guarantors - Mr. Jijo John and Mr. Maneesh Kumar Singh. Guarantee Agreement was executed on 23.03.2013. (iv) On a request made by the Corporate Debtor, facility was enhanced to an aggregate amount of Rs.51 Crore and Letter of Arrangement dated 17.12.2014 was issued. (v) On April, 2016, the Corporate debtor again approached the State Bank of India for renewal and an increase/ enhancement of the facility. By Letter of Arrangement dated 13.04.2016, extended facility of aggregating to Rs.6249.50 Crores was granted. (vi) Supplemental Agreement of Loan for increase in overall limit was executed on 12.05.2016. (vii) To secure the amount granted under the Supplemental Agreement of Loan, Supplemental Deed of Guarantee was executed by Mr.

John and Mr. Maneesh Kumar Singh. Second Supplemental Deed of Guarantee for enhanced overall limit was executed by the Asian Business Connections Pvt. Ltd. in favour of the Financial Creditor. A Deed of Guranteee for overall limited executed by Advantage Oils Pvt. Ltd. (viii) Corporate Debtor defaulted in serving the facilities. On 08.08.2018, the Bank declared the account of Corporate Debtor as NPA.

(ix) On 07.01.2019, Bank issued a notice calling upon the Corporate Debtor to repay the amount of Rs.1388,87,36,968/- being the outstanding amount as on 30.11.2018 along with further interest. (x) On 30.01.2019, the State Bank of India filed an OA under Section 19 of the Debts Due to Banks and Financial Institutions Act, 1993 being OA No.107 of 2019 for recovery of Rs.1408,57,30,754/-. (xi) The Corporate Debtor on 11.03.2020 sent a letter to the Bank requesting for settlement of dues. The said request letter was again sent on 05.05.2020. (xii) On 05.09.2020, the Bank addressed a letter providing an One Time Settlement Offer, which offer was agreed and accepted by the Corporate Debtor as well as the Guarantors.

(xiii) In compliance of the Terms of the OTS, Corporate Debtor issued undertaking on 11.05.2021. (xiv) The parties arrived at amicable settlement and on 25.06.2021, parties jointly filed an application for Consent Decree before the Debts Recovery Tribunal (DRT).

(xv) On 26.04.2022, DRT passed a Consent Decree. The judgment clearly stated that in the event defendants to the OA filed to adhere to the terms of the decree, the entire outstanding amount will be payable by them.

(xvi) The Corporate Debtor failed to adhere to the terms of the OTS.

(xvii) The State Bank of India by letter dated 02.01.2023 intimated the Corporate Debtor that OTS has failed.

(xviii) The Corporate Debtor has also acknowledged the outstanding amount in its financial accounts ending 31.03.2019 and 31.03.2020. (xix) The State Bank of India filed an application under Section 7 on 13.03.2023 claiming an amount of Rs.2730,51,66,175.58/- as on 28.02.2023 with further interest. (xx) The Adjudicating Authority issued notice in the Section 7 application. Reply was filed by the Corporate