IBC | CIRP Of Holding Company Cannot Include Subsidiary's Assets: Supreme Court

The Supreme Court ruled that the Insolvency and Bankruptcy Code (IBC) Corporate Insolvency Resolution Process (CIRP) of a holding company cannot extend to the assets of its subsidiary. The decision clarified that assets of a subsidiary are distinct from those of the holding company and cannot be included in the CIRP unless the subsidiary itself is undergoing insolvency proceedings. This ruling is based on the principle that the legal entity of a subsidiary is separate from its parent company, maintaining distinct financial responsibilities and obligations.