Parsvnath case: Settlement talks can't stall insolvency once default found
Business Standard
Supreme Court ruled that settlement talks cannot delay insolvency proceedings once default is established in Parsvnath Developers case.Summary
The Supreme Court upheld the revival of insolvency proceedings against Parsvnath Developers, ruling that once a debt and default are established, settlement negotiations cannot postpone admission into the insolvency process. The case stemmed from loan facilities extended by Sammaan Capital, with the debt later assigned to ARCIL. Despite the company’s attempts to negotiate settlements after the NCLT’s revival order, the Court found that such proposals reinforced the existence of outstanding dues and did not negate the default, thereby dismissing the directors’ appeal.
(Source：Business Standard)