#Settlement Negotiations

The Karnataka High Court reaffirmed the doctrine of election, holding that a party cannot simultaneously accept benefits under a settlement agreement and later challenge its obligations. The ruling dismisses attempts to withdraw deposited funds while contesting the same instrument, reinforcing contractual estoppel in commercial disputes.

The NCLAT has ruled that ongoing settlement discussions and partial debt repayments cannot override clear evidence of financial default under Section 7 of the IBC. This clarifies that corporate insolvency proceedings remain valid if the debt is undisputed and due, reinforcing creditor rights against tactical delays and undermining the integrity of the insolvency process.