Court Upholds IBC Supremacy, Rejects One Time Settlement Challenge After CIRP Begins; Alternatives Under IBC Unexplored.

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....The HC dismissed the petition filed by the petitioner challenging the rejection of its One Time Settlement (OTS) proposal and seeking relief after commencement of the Corporate Insolvency Resolution Process (CIRP) of its step-down subsidiary/Borrower Entity. The HC held that the petitioner failed to approach the court immediately after the OTS rejection, and the delay clouded its bona fides. The RBI Framework must give way to the CIRP once initiated, as the IBC is a self-contained Code. The HC ruled that it cannot compel the sole Financial Creditor to accept an OTS proposal once the CIRP commences, as it replaces bipartite negotiations with multi-party resolutions involving the Committee of Creditors (CoC). The petitioner had an alternative.........