NCLAT Allows Withdrawal of Insolvency Case Against Oswal Overseas with ₹2.80 Crore Settlement
Insolvency proceedings against Oswal Overseas have been allowed to be withdrawn after a settlement was reached with its financial creditor LH Sugar Factories. The National Company Law Appellate Tribunal (NCLAT) has accepted the joint application filed by Oswal Overseas and LH Sugar Factories to inform the appellate tribunal about the amicable settlement of their dispute.
NCLAT Allows Withdrawal of Insolvency Case Against Oswal Overseas
A joint application was moved before a NCLAT bench of Justice Mohammad Faiz Alam Khan and Naresh Salecha by Oswal Overseas and its financial creditor LH Sugar Factories to inform the appellate tribunal about an amicable settlement of their dispute.
They also placed the settlement terms on record before the appellate tribunal. Moreover, a demand draft for ₹2.80 crore has already been handed over to LH Sugar Factories following the settlement between the parties.
Key Terms of the Settlement
Counsel appearing for LH Sugar Factories informed the NCLAT that “now the financial debt so far as the Respondent No 1 (LH Sugar Factories) is concerned has been discharged in full and final”.
Impact of Recent Amendments to the Insolvency and Bankruptcy Code
- The matter is required to be placed before the Committee of Creditors (CoC), which can be constituted only after the claims are collated.
- A request was made to modify the interim order dated June 8, 2026, to allow the Interim Resolution Professional to verify and collate claims and constitute the CoC, while restraining any further steps in the corporate insolvency resolution process, including the invitation of Expressions of Interest (EOIs), until the NCLT decides the application filed under Section 12A of the Code.
Key Takeaways
- The NCLAT has allowed the withdrawal of an appeal filed against insolvency proceedings initiated against Oswal Overseas.
- The settlement between Oswal Overseas and LH Sugar Factories has discharged the financial debt of ₹2.80 crore.
- The matter will now be placed before the Committee of Creditors (CoC) for further proceedings.
FAQs
What is the status of the insolvency proceedings against Oswal Overseas?
The insolvency proceedings against Oswal Overseas have been allowed to be withdrawn after a settlement was reached with its financial creditor LH Sugar Factories.
What is the amount of the settlement between Oswal Overseas and LH Sugar Factories?
The settlement amount is ₹2.80 crore, which has been discharged in full and final by LH Sugar Factories.
What is the next step in the matter?
The matter will now be placed before the Committee of Creditors (CoC) for further proceedings.
Conclusion
The NCLAT’s decision to allow the withdrawal of the insolvency case against Oswal Overseas is a significant development in the matter. The settlement between Oswal Overseas and LH Sugar Factories has discharged the financial debt of ₹2.80 crore, and the matter will now be placed before the Committee of Creditors (CoC) for further proceedings. This decision is a testament to the effectiveness of the Insolvency and Bankruptcy Code in resolving disputes and promoting amicable settlements between parties. As a result, Oswal Overseas can now focus on its business operations without the burden of insolvency proceedings.
