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Informative

Corporate Debtor Failed to Comply with One-Time Settlement Terms: NCLAT Greenlights CIRP Revival

Update / Judgement Date

12 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Corporate Law & GovernanceInsolvency & Bankruptcy Code

The NCLAT has greenlighted a CIRP revival, ruling that a "corporate debtor failed to comply with one-time settlement terms." The tribunal's decision provides a significant victory for the creditor. The ruling clarifies that a company that fails to comply with a settlement term can be taken into insolvency.