Mumbai, Sept. 15 -- The National Company Law Appellate Tribunal (NCLAT) has cleared the way for Talwandi Sabo Power Ltd's (TSPL) demerger from its parent company Vedanta Ltd, setting aside a lower court's order that put the proposed demerger on hold.

The order comes after the counsel for Talwandi Sabo informed the NCLAT that it has reached a settlement with China's Sepco Electric Power Construction Corp. (Sepco) on 11 September. Sepco is one of the creditors of TSPL that objected to the demerger for alleged non-payment of dues worth Rs.1,251 crore.

The details of the settlement, however, have not been disclosed.

"This settlement agreement provides for a full and final resolution of all claims and counterclaims and includes withdrawal o...