Asset Deposited By Corporate Debtor As Security Before CIRP Commencement Continues To Be Asset Of Corporate Debtor: Bombay High Court

The Bombay High Court ruled that the assets of a corporate debtor cannot be transferred or disposed of after the commencement of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). The court emphasized that any such transactions are void and must be reversed to protect the interests of creditors. This ruling reinforces the principles of the IBC and ensures that the assets of insolvent companies are preserved for equitable distribution among creditors.