Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 5(24)(i) | Step-Down Control Through Subsidiaries Constitutes Related Party Status : NCLAT
NCLAT has ruled that control exercised indirectly through subsidiary entities qualifies as 'related party' under the IBC, triggering strict scrutiny of claims and denying secured creditor status for immovable asset claims. This clarifies the scope of related party exposure in CIRP and caps recoveries to principal paid under FEMA, significantly impacting restructuring strategies for corporate groups with layered ownership.