https://www.taxtmi.com/caselaws?id=752947 The NCLAT dismissed an appeal challenging admission of a second petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor had initially settled with financial creditors after the first petition was admitted, leading to withdrawal of the original proceedings. However, the debtor defaulted on the settlement agreement, paying only Rs. 1,10,00,000 against arrears exceeding Rs. 3 crores. The tribunal held that allowing such tactics would incentivize unscrupulous debtors to manipulate the insolvency process through false settlements. The second petition was properly admitted as debt and default were established, preventing abuse of the settlement mechanism. en-us Mon, 20 May 2024 00:00:00 +0530 Tue, 21 May 2024 18:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752947 The NCLAT dismissed an appeal challenging admission of a second petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor had initially settled with financial creditors after the first petition was admitted, leading to withdrawal of the original proceedings. However, the debtor defaulted on the settlement agreement, paying only Rs. 1,10,00,000 against arrears exceeding Rs. 3 crores. The tribunal held that allowing such tactics would incentivize unscrupulous debtors to manipulate the insolvency process through false settlements. The second petition was properly admitted as debt and default were established, preventing abuse of the settlement mechanism. Case-Laws Insolvency and Bankruptcy Mon, 20 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752947