When insolvency is not a shortcut

The article discusses the misuse of insolvency proceedings as a pressure tactic in commercial disputes, particularly those involving warranty claims. The NCLAT ruling clarifies that such disputes should be resolved through contractual mechanisms, not insolvency. This decision protects businesses from undue pressure, restores balance in negotiations, and aims to enhance investor confidence by preventing misuse of insolvency laws.

Please click here to read the full article by Dheeraj Nair, Partner, Vishrutyi Sahni, Partner, and Muskaan Gupta, Associate, published in Hindustan Times.