The Hon'ble NCLAT, Principal Bench, New Delhi passed an order dated 09 July 2026 in the matter between Paramjeet Singh (Suspended Managing Director of Oswal Overseas Ltd.) as Appellant and LH Sugar Factories Limited & Anr. as Respondents.
The Appellant (Oswal Overseas Limited) and Respondent No.1 (LH Sugar Factories Limited) jointly informed NCLAT that disputes between parties have been amicably settled through a Settlement Agreement executed between them.
In view of the settlement, the Appellant sought permission to withdraw the Appeal, which was granted by NCLAT dismissing the Appeal as withdrawn.
Financial Impact
A Demand Draft No. 160850 drawn on IDFC First Bank dated 23.06.2026 for ₹2,80,00,000/- (Two Crore Eighty Lakh) has been handed over by the Appellant to Respondent No.1 towards settlement.
Respondent No.1 (LH Sugar Factories Limited) confirmed before NCLAT that its financial debt stands fully and finally discharged.
Procedural Directions
NCLAT directed that if an application under Section 12A of the Insolvency and Bankruptcy Code, 2016 is filed before the Adjudicating Authority by the Financial Creditor:
The Interim Resolution Professional (IRP) shall be permitted to collate the claims received
The IRP shall constitute the Committee of Creditors (CoC)
The IRP shall not proceed further by inviting Expression of Interest (EOI) until the Section 12A application is disposed of by the Adjudicating Authority
Next Steps
The Company shall continue to keep the Stock Exchange informed of any further material developments in the matter
Specifically, the outcome of proceedings before Hon'ble National Company Law Tribunal on the application proposed to be filed under Section 12A of IBC 2016 will be disclosed
Legal Representation
For Appellant: Mr. Sanjveev Sagar, Sr. Advocate with Mr. Suhail Khan, Mr. Vishal Raj Sehijpal, Mr. Farid Ahmed Nizami, Vratika Mittal, and Mr. Shobhit Sabharwal, Advocates
For Respondents: Mr. Mansumyer Singh, Advocate for R-2/IRP; Mr. Mansij Arya, IRP in person for R-2; Mr. Neeraj Malhotra, Sr. Advocate with Mr. Karan Luthra, Mr. Pratham Mehrotra, Mr. Nimish Gupta, Mr. Rohan Dua, Advocates for R-1
Tribunal Composition
Justice Mohammad Faiz Alam Khan, Member (Judicial)
