Corporate Debtor Liable: NCLAT Confirms CIRP Admission The National Company Law AppellateTribunal (NCLAT), in a recent ruling, upheld the initiation of the CorporateInsolvency Resolution Process (CIRP) against M/s Ace Engineering (India) Pvt. Ltd., rejecting claims that a One-Time Settlement (OTS) with personal guarantors extinguished the company’s debt. The appeal was dismissed on July 3, 2025.
The appellant, Puneet Resutra, director and shareholder of Ace Engineering, challenged the March 6, 2023, order of the National Company Law Tribunal (NCLT), Chandigarh Bench, which admitted a Section 7 application filed by Jammu & Kashmir Bank Ltd. The application sought CIRP initiation on the grounds of default in repayment of…