Case Law Analysis
|National Company Law Appellate Tribunal
Scheme of Arrangement Under Companies Act | Dissenting Creditors Bound by Tribunal-Approved Compromise : NCLAT Upholds NSEL Settlement
NCLAT affirms that a tribunal-approved scheme of arrangement under the Companies Act binds dissenting creditors, even if it mandates withdrawal of pending civil suits and assigns claims to a third party. The ruling reinforces the legal sanctity of court-sanctioned compromises over individual creditor objections, impacting creditor rights in corporate debt restructuring.