NCLAT Allows Withdrawal Of Insolvency Appeal Against Oswal Overseas, Settlement Clears ₹2.80 Crore Dues To LH Sugar Factories
NCLAT allowed Oswal Overseas to withdraw its insolvency appeal following a ₹2.80 crore settlement with LH Sugar Factories.Summary
The National Company Law Appellate Tribunal (NCLAT) has permitted the withdrawal of an insolvency appeal filed by Oswal Overseas Ltd after the company reached an amicable settlement with its financial creditor, LH Sugar Factories. As part of the agreement, Oswal Overseas paid ₹2.80 crore via demand draft to settle all outstanding dues.
The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan and Naresh Salecha, directed the parties to file an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT) to formally terminate the insolvency process. While the Interim Resolution Professional (IRP) is permitted to verify claims and form the Committee of Creditors (CoC), they are barred from taking further Corporate Insolvency Resolution Process (CIRP) steps until the NCLT rules on the withdrawal application.
The dispute originated when LH Sugar Factories approached the NCLT after Oswal Overseas failed to repay a short-term loan taken in August 2024. The NCLAT also dismissed a separate appeal by Paramjeet Singh, the suspended Managing Director of Oswal Overseas, who had challenged the insolvency proceedings.
(Source：The Free Press Journal)