https://www.taxtmi.com/caselaws?id=768465 The NCLAT upheld the admission of a Section 7 petition filed by an ARC against a corporate debtor. The court held that despite a Global Settlement Agreement (GSA) between parties, the ARC could proceed with insolvency proceedings based on the original financial debt when the debtor defaulted on settlement payments of Rs. 21.40 crore. The court ruled that breach of GSA does not change the nature of financial debt or preclude creditor's rights under IBC. With debt and default established above the threshold limit, the Section 7 application was properly admitted. The appeal was dismissed. en-us Thu, 03 Apr 2025 00:00:00 +0530 Mon, 07 Apr 2025 14:12:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768465 The NCLAT upheld the admission of a Section 7 petition filed by an ARC against a corporate debtor. The court held that despite a Global Settlement Agreement (GSA) between parties, the ARC could proceed with insolvency proceedings based on the original financial debt when the debtor defaulted on settlement payments of Rs. 21.40 crore. The court ruled that breach of GSA does not change the nature of financial debt or preclude creditor's rights under IBC. With debt and default established above the threshold limit, the Section 7 application was properly admitted. The appeal was dismissed. Case-Laws IBC Thu, 03 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768465