Think Twice Before Defaulting! ⚠️ NCLAT Slams Debtors ‘Blowing Hot & Cold’ | IBC 2016

Can a corporate debtor escape insolvency proceedings by signing a settlement… and then dishonoring it? 🤔

In its landmark order dated 22nd September 2025, the NCLAT in Dnyaneshwar Shankar Unde vs. Shukla Dairy Pvt. Ltd. gave a strong message: corporate debtors cannot “blow hot and cold.” If a settlement fails, the creditor has the right to restore the insolvency petition.

👉 In this detailed video, we cover:

Background of the case under Section 9, IBC 2016

Settlement terms and breach by the corporate debtor

NCLAT’s sharp observations on “blowing hot and cold”

Revival of the original insolvency petition

Key legal lessons for creditors, insolvency professionals, and corporate debtors

⚖️ Final Ruling: The NCLAT restored the original petition, reinforcing that settlements cannot be misused as a tool to escape CIRP.

🔑 Key Learning: Always ensure that settlement orders explicitly include a revival clause. This protects creditor rights if the debtor defaults again.

📖 Stay tuned till the end for practical insights and professional takeaways on insolvency law in India.

✨ If you find this video helpful, don’t forget to Like, Share & Subscribe for more updates on IBC, NCLT/NCLAT rulings, and corporate law.
📢 Follow us for more updates:
https://www.youtube.com/@RamanareddyFCS/playlists
https://www.youtube.com/@Ramana-legal/playlists
www.youtube.com/@RamanareddyFCS
www.youtube.com/@Ramana-legal
#NCLAT #IBC2016 #InsolvencyLaw #CorporateDebtors #NCLT #InsolvencyAndBankruptcyCode #LegalUpdate #CorporateLawIndia #IBCJudgment #SettlementBreach #CIRP #OperationalCreditor #CompanyLaw #InsolvencyProceedings #IndianLaw

Видео Think Twice Before Defaulting! ⚠️ NCLAT Slams Debtors ‘Blowing Hot & Cold’ | IBC 2016 канала RR Corporates