Settlement Fixing Payment Terms Doesn't Novate Or Change Debt's Nature: NCLT Mumbai Reaffirms

The National Company Law Tribunal (NCLT) at Mumbai recently reaffirmed that a settlement agreement that merely prescribes the mode and schedule of payment does not extinguish or alter the nature of an operational debt and does not create any pre-existing dispute. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar, while admitting Sparklet Engineers Pvt Ltd, an oil...