When CIRP was initiated against a Corporate Debtor as a whole, it cannot be modified only to one project on application of a Financial Creditor – Kotak Mahindra Bank Ltd. Vs. RP of Universal Buildwell Pvt. Ltd. – NCLAT New Delhi

NCLAT held that the insolvency was initiated against the Corporate Debtor and petition of the homebuyer was admitted against the Corporate Debtor. Thereafter, it was the appellant who has filed the application for confining the CIRP to one project only after filing its claim which application came to be rejected. But when the Adjudicating Authority has directed initiation of insolvency against the Corporate Debtor, on the application of the appellant, Adjudicating Authority could not have modified the initiation of CIRP by confining the CIRP to one project.

When CIRP was initiated against a Corporate Debtor as a whole, it cannot be modified only to one project on application of a Financial Creditor – Kotak Mahindra Bank Ltd. Vs. RP of Universal Buildwell Pvt. Ltd. – NCLAT New Delhi Read Post »