Plea U/S 9 IBC Can't Be Admitted Once Affidavit Confirming Settlement Between Corporate Debtor & Operational Creditor Is Filed: NCLAT

The NCLAT has ruled that an "adjudicating authority can't overlook and admit a petition under Section 9 of the IBC" once a "settlement is confirmed by an affidavit." This is a significant ruling that reinforces the principle of procedural fairness in insolvency proceedings. 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.