#settlement breach

NCLAT rules that a financial creditor can revive Corporate Insolvency Resolution Process (CIRP) if the corporate debtor breaches court-recorded settlement terms, treating non-compliance as a material default. This reinforces strict adherence to settlement agreements under the Insolvency and Bankruptcy Code, impacting creditors' rights to reinitiate insolvency proceedings.

Kerala High Court directs lower courts to re-open execution petitions and compulsorily re-refer parties to mediation if settlement terms are breached, reinforcing ADR compliance in enforcement proceedings. The ruling clarifies that post-settlement non-compliance revives the court's duty to facilitate resolution under the CPC, impacting decree holders and judgment debtors in civil disputes.