Application under Section 12A: CoC’s Discretion to Evaluate Settlement Proposal

Shaji Purushothaman Vs Union Bank of India & Ors. (NCLAT Delhi) In the case of Shaji Purushothaman Vs Union Bank of India & Ors., the National Company Law Appellate Tribunal (NCLAT) addressed the issue of whether an application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC) can be entertained to settle claims with creditors after the admission of an insolvency application. The appellant, Shaji Purushothaman, Director of Empee Distilleries Ltd., sought to set aside the order of admission of the insolvency application against the corporate debtor by settling the outs...