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Oswal Overseas exits insolvency after ₹2.8 crore settlement
NCLAT allows Oswal Overseas to withdraw insolvency case after ₹2.8 crore settlement with creditor LH Sugar Factories. The tribunal modified its interim order to let the IRP collate claims and constitute the CoC while barring further steps until the NCLT decides the withdrawal application.
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The National Company Law Appellate Tribunal has allowed Oswal Overseas to withdraw from insolvency proceedings after the company settled its debt with financial creditor LH Sugar Factories.
A joint application was moved before an NCLAT bench of Justice Mohammad Faiz Alam Khan and Naresh Salecha by both parties, who informed the tribunal of an amicable settlement. A demand draft for ₹2.80 crore has already been handed over to LH Sugar Factories, the tribunal was told.
"Now the financial debt so far as the Respondent No 1 (LH Sugar Factories) is concerned has been discharged in full and final," counsel for LH Sugar Factories told the NCLAT.
The parties submitted that an application under Section 12A of the Insolvency and Bankruptcy Code must be moved before the National Company Law Tribunal to initiate the formal withdrawal process. Under recent amendments to the IBC, the matter must also be placed before a Committee of Creditors, which can be constituted only after claims are collated.
The NCLAT modified its earlier interim order from June 8, 2026, which had restrained the Interim Resolution Professional from taking further steps. The tribunal now allows the IRP to verify and collate claims and constitute the CoC. It bars any further steps in the corporate insolvency resolution process – including the invitation of Expressions of Interest – until the NCLT decides the Section 12A application.