Oswal Overseas Ltd Settlement with LH Sugar Factories Limited Finalized Following NCLAT Order
Oswal Overseas Limited has reached an amicable settlement with the financial creditor, LH Sugar Factories Limited, leading to the withdrawal of a legal appeal before the National Company Law Appellate Tribunal (NCLAT). The tribunal issued its order on July 9, 2026, acknowledging the resolution between the parties.The settlement was finalized after both the appellant and Respondent No. 1 jointly informed the NCLAT that their disputes had been resolved through a signed Settlement Agreement. Consequently, the Tribunal dismissed the appeal as withdrawn.
Procedural Directives for Resolution
The tribunal provided specific directions regarding the ongoing insolvency proceedings. In the event of an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, being filed by the Financial Creditor, the Interim Resolution Professional (IRP) is permitted to:
| Action Item | Status/Instruction |
|---|---|
| Collate Claims | Permitted |
| Constitute Committee of Creditors (CoC) | Permitted |
| Invitation of Expression of Interest (EOI) | Restricted until Section 12A application is disposed of |
The tribunal clarified that while the IRP can collate claims and form the CoC, they must not proceed with inviting Expressions of Interest until the Adjudicating Authority disposes of the pending Section 12A application.
Financial Settlement Details
During the proceedings, it was confirmed that a payment has already been processed as part of the settlement. The appellant handed over a Demand Draft to Respondent No. 1 to resolve the outstanding issues.
The following table outlines the verified financial details of the settlement:
| Item | Detail |
|---|---|
| Instrument Type | Demand Draft |
| Instrument Number | 160850 |
| Issuing Bank | IDFC First Bank |
| Date of Instrument | June 23, 2026 |
| Amount Paid | Rs. 2,80,00,000 |
Following this payment, the counsel for Respondent No. 1 confirmed before the tribunal that the financial debt pertaining to Respondent No. 1 has been discharged in full and final.
Stock Price Movement
Oswal Overseas Ltd shares settled down at ₹119.75, representing a 0.99% decline at the close of trade on Monday. The stock traded completely flat throughout the day, locking at exactly ₹119.75 for both its high and low.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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