The Ahmedabad bench of the National Company Law Tribunal (NCLT), while dismissing applications filed by a cotton spinning company seeking time to pursue a one-time settlement (OTS), held that OTS proposals, ongoing settlement discussions and identification of prospective purchasers cannot defeat or postpone adjudication of a valid insolvency application.
The applications had also sought permission to facilitate inspection of the company’s assets by prospective purchasers.
The tribunal comprising Judicial Member Chitra Hankare and Technical Member Dr. V. G. Venkata Chalapathy made the observations while admitting an insolvency petition filed by State Bank of India against Varidhi Cotspin Pvt. Ltd.
The tribunal observed, “Mere…