Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 24 June 2026
Case Overview
The appeal (Comp. App. (AT) (Ins) No. 1081 of 2026) was filed by Paramjeet Singh, Suspended Managing Director of Oswal Overseas Ltd., against L H Sugar Factories Ltd. and the Interim Resolution Professional (IRP). The proceedings concern the Corporate Insolvency Resolution Process (CIRP) initiated against Oswal Overseas Ltd. The parties have reached a settlement agreement and submitted consent terms to the tribunal (Application Diary No. 68726). Both appellant and respondent counsel jointly requested termination of the CIRP proceedings, arguing that continuation would constitute an abuse of legal process given the amicable settlement. The IRP reported that since the initiation of CIRP, two claims have been received - one financial and one operational claim.
The tribunal considered legal precedents, including the Supreme Court's judgment in Glas Trust Company LLC Vs. Byju Raveendran, and the procedural requirements under Section 12A of the Insolvency and Bankruptcy Code read with Regulation 30A of the CIRP Regulations, 2016. The bench expressed the view that CIRP proceedings cannot be terminated directly in appeal and must follow the proper channel through the Adjudicating Authority under Section 12A.
Final Outcome
The tribunal adjourned the case to 8 July 2026 and issued interim directions: (1) The IRP is directed not to take any further steps in pursuance of the impugned order until the next hearing; (2) The IRP is permitted to file a reply to the appeal within 4 days; (3) Respondent No. 1 may file a short reply regarding the settlement and impugned order within 4 days; (4) Appellant may file rejoinders within 4 days after receiving copies. The parties have committed to abide by the terms of their settlement agreement.
Topics: Insolvency Resolution, Settlement Agreement, Corporate Litigation