In a recent decision in the case of Vivek Bansal v. Burda Druck India Pvt. Ltd. (Company Appeal (AT) 552 of 2020) the National Company Law Appellate Tribunal (“NCLAT”) allowed the corporate debtor to exit the insolvency resolution process after the initiation order was passed by the NCLT, the moratorium was imposed, and an interim resolution professional had been appointed. The NCLAT recorded that the corporate debtor and the appellant- operational creditor had reached a settlement and set aside the CIRP initiation order and the consequent moratorium.
NCLAT allows corporate debtor to settle with operational creditor after initiation of CIRP
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