Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 27 October 2026
Case Overview
This is an appeal (CA (AT) (Ins) No. 2008 of 2026) filed by Sanjay Chandrakant Jagtap against an order from the Adjudicating Authority (NCLT) concerning a dispute with Capri Global Capital Ltd. The core of the dispute revolved around a One-Time Settlement (OTS) proposal made by the appellant during the NCLT proceedings. The OTS, which was accepted by Capri Global Capital Ltd. (Respondent No. 1), stipulated a total payment of ₹1.98 Crore to be made by the appellant according to a specific timeline. The appellant failed to adhere to this timeline due to financial constraints. Consequently, the NCLT passed an order against the appellant. The appellant's counsel argued before the NCLAT that the NCLT took a "hyper technical view" by not granting additional time to complete the OTS payment, emphasizing that the objective of the Insolvency and Bankruptcy Code (IBC) is not mere recovery. Crucially, after the NCLT order was passed, the appellant made the remaining OTS payments of ₹1,08,55,286 on October 3 and October 5, 2026. The total amount paid to the respondent stands at ₹2,00,75,399, which, according to the appellant, fully discharges the debt as per the OTS agreement.
Final Outcome
The NCLAT acknowledged that the entire OTS amount had been paid by the appellant to Respondent No. 1 and noted an "element of settlement" in the dispute. The tribunal granted the respondents two weeks to file a reply and the appellant one week thereafter to file a rejoinder. Importantly, the NCLAT ordered that the impugned NCLT order shall remain stayed until the next hearing. It also directed the Interim Resolution Professional (Respondent No. 2) to maintain the corporate debtor as a going concern with the assistance of its suspended management. The matter has been listed for the next hearing on November 27, 2026.
Topics: Insolvency Appeal, One-Time Settlement, Debt Discharge