Deposit In Pursuance Of One Time Settlement Proposal Remains Corporate Debtor's Asset If Settlement Fails: NCLAT

The NCLAT ruled that a deposit made as part of a one-time settlement (OTS) proposal remains a corporate debtor's asset if the settlement fails. This ruling emphasized that assets should not be transferred until a settlement is finalized. The decision clarified that the deposit made under OTS terms, even when the settlement falls through, still remains part of the debtor's estate, providing protection to the debtor during the insolvency process. This decision underscores the importance of ensuring that assets in dispute are protected and not transferred prematurely during settlement negotiations.