NATIONAL COMPANY LAW TRIBUNAL

COURT ROOM NO. 1

MUMBAI BENCH

Item No. 12

C.P. (IB)/337(MB)2024

CORAM:

SH. PRABHAT KUMAR JUSTICE V.G. BISHT (Retd.)

HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

ORDER SHEET OF THE HEARING ON 11.03.2025

NAME OF THE PARTIES: UNION BANK OF INDIA V/s KESAR TERMINALS

& INFRASTRUCTURE LIMITED

Section 7 of the Insolvency and Bankruptcy Code, 2016

ORDER

1. Adv. Shivanjali Mane i/b Legal Prism for the Applicant is present. Adv. Raiyana

Roy Gawai, Adv. Pervinder Chatrapati, Adv. Shikha Upadhyay, Adv. Kanisk Arora for the Corporate Debtor are present. Adv. Ranjana Roy Gawai, Adv. Pervinder Tanwar, Adv. Shikher Upadhyay and Adv. Kanishk Arora for the Corporate Debtor

are present through VC.

2. Ld. Counsel for the Corporate Debtor informs that their OTS proposal has been

approved by the Bank for a sum of Rs.14,50,00,000/- (Rupees Fourteen Crore Fifty Lakh Only) vide its sanction letter dated 21^st February 2025. The Ld. Counsel for the Financial Creditor Union of India confirms these facts and places on record the

said letter also.

3. The terms and conditions of sanction letter dated 21^st February 2025 are as follows

–

a. Primary & collateral securities and corporate guarantee of M/s Terminals

& Infrastructure Ltd shall be released only upon receipt of entire settlement

amount.

b. Legal charges of Rs.0.05 crore or actual amount whichever is higher shall be paid by the borrower/guarantor over and above the settlement amount.

c. Consent terms with default clause to be filed in DRT (if any) and consent decree to be obtained. The Bank will withdraw suit /legal proceeding against the company only on receipt of full and final payment of offer/OTS amount.

d. To move an application for obtaining a consent decree in the account for the entire suit claim along with cost, Interest and reliefs as prayed for with a provision that if the Partners/ Guarantors repay the compromise settlement amount as per the terms agreed, the decree would stand satisfied. Otherwise the decree for the total suit claim will be enforceable. Further, the suit filed against the directors, mortgagors, guarantors shall be withdrawn on payment of the compromise settlement amount in full.

e. All claims/Suits/legal proceedings, if any initiated against the Bank or its officials (including the case against erstwhile Corporation Bank and Andhra Bank) by the borrower/guarantor/third party/legal heirs, known or unknown to the Bank must be withdrawn before implementation of OTS.

f. Borrower to pay/settle statutory dues, if any from their own sources and to deal with concerned authorities separately. Also the Company should give undertaking to the effect that, Bank is not liable to pay any statutory dues payable to the state /

central government authorities / third parties before implementation of OTS.

g. Default in payment of OTS amount within stipulated period will render the OTS as failed and all reliefs and concessions shall lapse automatically and Bank will be entitled to recover the entire dues as per documents/ prayer in the plaint, after adjusting the payment, if any, received.

h. OTS is being considered by the Bank as a commercial decision and shall have no bearing whatsoever on the ongoing criminal case/investigation, if any not known to the bank, being carried out by the CBI/ Police and the same shall proceed as per law.

i. Acceptance letter duly signed by authorized signatories to be obtained by the j. The proposed settlement of the account will not have any bearing whatsoever on the ongoing criminal proceedings if any pending in the account against the k. Post settlement, criminal case will not be withdrawn by the Bank. All the assistance required or called for by the investigating agency or court to take the case to its logical conclusion shall be given by the branch.

4. The principle borrower has acknowledged these terms.

5. In view thereof, the C.P. (IB)/337(MB) of 2024 is disposed of as withdrawn in terms of the OTS sanction letter dated 21.02.2025. The Financial Cr