The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi recently dismissed an applicant’s challenge to the revival of its Corporate Insolvency Resolution Process (CIRP), noting that the Adjudicating Authority had rightly restored the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) after the corporate debtor failed to honor the terms of a One-Time Settlement (OTS) that it had accepted.
The appeal filed by Bagh Bahar Appliances Pvt. Ltd. arose from an order passed by the National Company Law Appellate Tribunal (NCLT) in an Interim Application filed by the financial creditor and respondent herein – Unity Small Finance Bank Ltd., seeking revival of CIRP citing breach of settlement…