Full Debt Settlement During Appeal Leads NCLAT to Close CIRP Against Corporate Debtor

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The National Company Law Appellate Tribunal (NCLAT), Principal Bench comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating a Company Appeal, held that when the entire debt amount claimed in a Section 7 IBC application, including interest, is fully paid and accepted by the financial creditor during the pendency of the appeal, the continuation of the Corporate Insolvency Resolution Process (CIRP) becomes unwarranted and the proceedings must accordingly be closed.

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