Case Law Analysis
|National Company Law Appellate Tribunal
Regulation 30A(1)(a) IBC | Adjudicating Authority Must Assess Solvency & Relevant Factors Before Approving Pre-CoC Settlement : NCLAT
NCLAT mandates that adjudicating authorities must evaluate a corporate debtor's solvency and other material factors before approving settlement offers made by suspended directors prior to CoC formation. This ruling reinforces the in rem character of CIRP proceedings and limits unilateral settlements that bypass creditor rights.