The Supreme Court restored the resolution plans for Earth Infrastructures Limited, holding that assets and development rights of its subsidiaries could be included in the insolvency resolution process by lifting the corporate veil. The Court found that the parent company and subsidiaries functioned as a single economic unit, with the parent controlling project development and finances. It also criticized GNIDA for delayed claims and objections, protected homebuyers from additional liabilities, and reinforced a substance-over-form approach in insolvency proceedings under the IBC.
Please click here to read the full article by Amar Gupta, Joint Managing Partner, Pranav Tanwar, Principal Associate, Mohit Sharma, Senior Associate, and Anirudh Vats, Associate, published in Mondaq.
Amar Gupta is a founding member of JSA’s Disputes Practice and currently serves as the Joint Managing Partner of the Firm.