Development Rights Constitute Property U/S 3(27) Of IBC, Can Be Included In Information Memorandum By RP U/S 29 Of Code: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that development rights constitute property under Section 327 of the Insolvency and Bankruptcy Code (IBC) and must be included in the information memorandum by the resolution professional under Section 29 of the IBC. This decision clarifies the treatment of development rights in insolvency proceedings, ensuring that they are considered as part of the debtor’s assets. The tribunal emphasized the importance of including all relevant assets in the information memorandum to provide a comprehensive view of the debtor’s financial position. The ruling aims to enhance transparency and accuracy in insolvency resolutions, ensuring that all stakeholders have access to complete information. By recognizing development rights as property, the tribunal seeks to protect the interests of creditors and promote fair and efficient insolvency proceedings. This decision is expected to impact numerous cases, guiding the treatment of development rights in insolvency resolutions.