The National Company Law Appellate Tribunal (NCLAT), in a recent ruling, overturned the National Company Law Tribunal’s (NCLT) decision and approved a capital reduction proposal by Ulundurpet Expressways Pvt. Ltd. (UEPL) under Section 66 of the Companies Act, 2013 (the Act). This ruling allowed UEPL to structure the repayment proceeds as interest-bearing unsecured loans between the company and its shareholders, to be repaid over a period of time.