https://www.taxtmi.com/caselaws?id=760032 The NCLAT dismissed an appeal challenging admission of an operational creditor's application under Section 9 of IBC, 2016. The corporate debtor had admitted debt and default by entering a settlement agreement, made partial payment, but failed to pay the remaining amount despite repeated communications. The Tribunal held that settlement amounts constitute operational debt, rejecting the appellant's argument that such amounts cannot be claimed as operational debt. The NCLAT noted that corporate debtors frequently adopt this practice of entering settlements, making partial payments, then breaching agreements and raising various defenses to deny operational creditors' rights. en-us Wed, 26 Jun 2024 00:00:00 +0530 Mon, 14 Oct 2024 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760032 The NCLAT dismissed an appeal challenging admission of an operational creditor's application under Section 9 of IBC, 2016. The corporate debtor had admitted debt and default by entering a settlement agreement, made partial payment, but failed to pay the remaining amount despite repeated communications. The Tribunal held that settlement amounts constitute operational debt, rejecting the appellant's argument that such amounts cannot be claimed as operational debt. The NCLAT noted that corporate debtors frequently adopt this practice of entering settlements, making partial payments, then breaching agreements and raising various defenses to deny operational creditors' rights. Case-Laws IBC Wed, 26 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760032