SC allows settlement between parties even after case is admitted under IBC

Since the inception of the code, the threat of insolvency has brought many debtors in line

The recent Supreme Court order allowing a settlement between parties even after initiation of insolvency proceedings has given new food for thought to bankers, debtors and professionals in this segment.

The move, say some, could give an undue edge to some creditors over others to negotiate a better deal for themselves. Some others see it as needed relief.

The apex court’s recent decision came in a case — Nisus Finance and Investment Manager vs Lokhandwala Kataria Construction — after a settlement deal between creditor and debtor. The Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a petition