Corporate Debtor's Statement To Enter Into OTS With Financial Creditor Indicates Existence Of Debt And Default: NCLAT

The NCLAT has ruled that a "corporate debtor's statement before the NCLT to enter into an OTS with a financial creditor indicates the existence of debt and default." This is a significant ruling that provides clarity on the legal standing of claims made by the EPFO during the corporate insolvency resolution process. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence.