https://www.taxtmi.com/caselaws?id=755167 The NCLAT dismissed an appeal challenging initiation of CIRP under IBC. The Corporate Debtor argued that a settlement agreement dated 27.08.2019 constituted novation, extinguishing original debt obligations. The NCLAT held that the settlement agreement lacked essential novation elements and only pertained to disposal of mortgaged properties. Citing Manohur Koyal vs. Thakur Das Naskar, the tribunal ruled that agreements made after breach of original contract do not constitute novation under Section 62. The existing rupee term loan and foreign currency loan assignments remained valid, establishing debt and default despite the settlement agreement's unilateral cancellation. en-us Tue, 02 Jul 2024 00:00:00 +0530 Sat, 06 Jul 2024 11:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755167 The NCLAT dismissed an appeal challenging initiation of CIRP under IBC. The Corporate Debtor argued that a settlement agreement dated 27.08.2019 constituted novation, extinguishing original debt obligations. The NCLAT held that the settlement agreement lacked essential novation elements and only pertained to disposal of mortgaged properties. Citing Manohur Koyal vs. Thakur Das Naskar, the tribunal ruled that agreements made after breach of original contract do not constitute novation under Section 62. The existing rupee term loan and foreign currency loan assignments remained valid, establishing debt and default despite the settlement agreement's unilateral cancellation. Case-Laws Insolvency and Bankruptcy Tue, 02 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755167