#one time settlement

NCLAT Chennai upholds liquidation under Section 33(1)(a) of the IBC, ruling that repeated failure to honor settlement proposals and non-cooperation with the Committee of Creditors (CoC) justifies bypassing resolution efforts. The judgment reinforces that liquidation is a last resort but becomes binding when promoters undermine the Corporate Insolvency Resolution Process (CIRP).

NCLAT rules that a financial creditor’s interest default exceeding ₹1 crore constitutes a valid default under Section 7 of the IBC, even if the corporate debtor breached a One Time Settlement (OTS). The ruling clarifies that service of notice via MCA-registered email suffices for CIRP initiation, impacting creditors’ rights and insolvency proceedings.

Jharkhand High Court upholds a Rs. 30 lakh one-time alimony award, ruling that Section 25 of the Hindu Marriage Act mandates financial security aligned with the marital standard of living, not merely the husband's present earnings. The judgment reinforces that maintenance quantum must account for past lifestyle, not just current declarations.

MP High Court rules that banks cannot initiate SARFAESI enforcement without strict adherence to statutory procedures, especially when court orders mandate status quo. The judgment underscores that arbitrary actions-including delayed disclosures, contradictory NPA dates, and mechanical OTS rejections-violate due process and threaten essential healthcare services reliant on financed diagnostic equipment.

Telangana High Court holds that unexplained delay in deciding revision petitions and representations under OTS Scheme violates principles of natural justice, mandating timely adjudication.