Can Shareholder/Promoter of Corporate Debtor submit revise offer increasing settlement value after approval of Rplan by CoC and pending for NCLT approval | Can OTS proposal be rejected on the ground that it extinguishes the personal guarantees of Promoter and Guarantors – Sanjeev Mahajan Vs. Indian Bank (Erstwhile Allahabad Bank) and Ors. – NCLAT New Delhi

In this case, the settlement proposal was with the condition that on approval of the same, liability of CD, Promoter and Guarantors shall stand extinguished, meaning thereby that the Bank has to release the personal guarantees of Promoter and Guarantors. Hon’ble NCLAT held that: (i) The decision, which was taken with 100% vote share to reject the settlement proposal of the Appellant, can in no manner be held to be arbitrary. (ii) When the settlement proposal, which was submitted by the Appellant, which came to be considered by the CoC and was rejected, it is not open for the Appellant, after the approval of Resolution Plan of the SRA and after rejection of settlement proposal of the Appellant by CoC, to sent emails increasing his offer from earlier submitted settlement proposal.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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