https://www.taxtmi.com/caselaws?id=449471 NCLAT Principal Bench dismissed an appeal challenging admission of section 7 application under IBC. The corporate debtor argued that parties had reached an out-of-court settlement and alleged financial creditor misused IBC provisions as recovery forum. NCLAT held that settlement agreement clearly stated security would be released only upon full payment, and financial creditor was not obligated to provide NoC for mortgaged properties before receiving settlement amount. The adjudicating authority correctly found debt and default above Rs. 1 crore threshold was established, warranting CIRP initiation. Appeal dismissed as no infirmity found in the admission order. en-us Thu, 25 Jan 2024 00:00:00 +0530 Mon, 12 Feb 2024 20:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449471 NCLAT Principal Bench dismissed an appeal challenging admission of section 7 application under IBC. The corporate debtor argued that parties had reached an out-of-court settlement and alleged financial creditor misused IBC provisions as recovery forum. NCLAT held that settlement agreement clearly stated security would be released only upon full payment, and financial creditor was not obligated to provide NoC for mortgaged properties before receiving settlement amount. The adjudicating authority correctly found debt and default above Rs. 1 crore threshold was established, warranting CIRP initiation. Appeal dismissed as no infirmity found in the admission order. Case-Laws Insolvency and Bankruptcy Thu, 25 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449471