Tribunal Confirms Insolvency Process Due to Debt Default and OTS Non-Compliance; Financial Creditor's Actions Lawful.

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....The National Company Law Appellate Tribunal, Principal Bench, New Delhi addressed issues regarding debt default, impact of One Time Settlement (OTS) Agreement, and Financial Creditor's conduct. The Tribunal found the Financial Creditor's claim of Rs. 58.38 Crores valid based on loan agreements and evidence of default. The failure to adhere to OTS terms justified insolvency proceedings despite initial intent to settle. Financial Creditor's actions were deemed lawful, with no evidence of bad faith. The Adjudicating Authority's decision to admit the Company Petition and initiate Corporate Insolvency Resolution Process (CIRP) was upheld due to clear debt admission and default exceeding Rs.1 crore. The appeal was dismissed, affirming the initiation of CIRP.....