In Brief
In this appeal arising from an insolvency petition, Uttara Foods and Feeds challenged an NCLAT order refusing to allow a settlement agreed between the parties. The Supreme Court found that the NCLAT lacked power under the applicable Rules to give effect to the compromise. The Court exercised its powers under Article 142 of the Constitution to set aside the NCLAT order and record the settlement. The Court also recommended that the competent authority amend the Rules to empower the NCLAT with inherent authority to permit such settlements, avoiding unnecessary appeals to the Supreme Court.
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