Topic
By setting aside a ₹1,885 cr inflated claim and correcting the information memorandum, the NCLAT affirmed that a guarantor can claim subrogation rights under the IBC. The ruling tightens claim valuation standards and protects guarantors in corporate insolvency cases.
NCLAT rules that unsold inventory in a RERA-registered project must be included in the corporate debtor’s asset pool during CIRP, even if the collaboration agreement is disputed or non-enforceable. This holding strengthens creditor claims and prevents developers from shielding project assets from insolvency proceedings.
NCLAT reinforces that resolution plans must provide full transparency in the Information Memorandum, including forensic audit details and asset valuation. Failure to disclose unexplained asset depletion or financial irregularities vitiates the plan's commercial wisdom, empowering adjudicating authorities to reject it outright.