Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: 27 October 2026

Case Overview

This appeal (CA (AT) (Ins) No. 2008 of 2026) was filed by Sanjay Chandrakant Jagtap against Capri Global Capital Ltd. and others, challenging an order from the Adjudicating Authority (NCLT). The dispute originated from a One-Time Settlement (OTS) agreement proposed by the appellant and accepted by Capri Global during the pendency of proceedings before the Adjudicating Authority. The OTS required the appellant to pay a total of ₹1.98 crore to Capri Global according to a specific timeline.

The appellant admitted to financial constraints that prevented adherence to the original OTS timeline. However, after the impugned order was passed, the appellant made two payments on 3 October 2026 and 5 October 2026 totaling ₹1,08,55,286. With these payments, the cumulative amount paid reached ₹2,00,75,399, which according to the appellant fully discharged the debt as contemplated in the OTS.

The principal argument presented was that since the OTS was accepted and the full amount has now been paid, no dispute (lis) remains between the parties. The appellant contended that the Adjudicating Authority adopted a hyper-technical view by not granting additional time to complete the OTS payments, emphasizing that the objective of the Insolvency and Bankruptcy Code (IBC) is not mere recovery of money.

Respondent No. 1 (Capri Global Capital Ltd.) fairly acknowledged through counsel that the entire OTS amount has now been paid by the appellant. The tribunal noted the admitted fact of complete payment and recognized an existing element of settlement in the dispute.

Final Outcome

The NCLAT granted a stay on the impugned order until the next hearing date, which is scheduled for 27 November 2026. The tribunal directed the Interim Resolution Professional (Respondent No. 2) to maintain the corporate debtor as a going concern with the assistance of the suspended management. Respondents were given two weeks to file a reply, with the appellant having one week thereafter to file a rejoinder if desired.

Topics: Insolvency, One-Time Settlement