Appeal dismissed; merger validity not reopened, leasehold rights transferred to corporate debtor formed liquidation estate; section 36(4)(a)(iv) inapp...
NCLAT affirmed admission of the Section 7 petition, holding that the MoU's Clause 6 effected an automatic event of default upon non-payment within the 45-day cure period, which expired on 16.03.2020, thereby terminating the compromise and vesting the Financial Creditor with entitlement to recover outstanding dues. Subsequent payments and a separate WCTL-III disbursement did not revive the lapsed MoU or cure the Term Loan default, and Clause 4.2's discretionary "may" did not amount to waiver. The Tribunal found a subsisting financial debt and continuing default predating Section 10A; equitable considerations were irrelevant at admission. Impugned order stood unassailable and the appeal was dismissed.
NCLAT affirmed admission of the Section 7 petition, holding that the MoU's Clause 6 effected an automatic event of default upon non-payment within the 45-day cure period, which expired on 16.03.2020, thereby terminating the compromise and vesting the Financial Creditor with entitlement to recover outstanding dues. Subsequent payments and a separate WCTL-III disbursement did not revive the lapsed MoU or cure the Term Loan default, and Clause 4.2's discretionary "may" did not amount to waiver. The Tribunal found a subsisting financial debt and continuing default predating Section 10A; equitable considerations were irrelevant at admission. Impugned order stood unassailable and the appeal was dismissed.
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