#vesting

The NCLAT held that under Section 154 IBC a bankrupt's estate vests in the trustee immediately, making post-bankruptcy withdrawals unauthorized even if claimed as excluded assets exceeding statutory limits, and affecting personal guarantors and debtors.

The Calcutta High Court ruled that any state vesting of property under the West Bengal Land Reforms Act, 1955, without a compensation mechanism violates Article 300-A of the Constitution. The judgment underscores that compensation is not merely procedural but a constitutional necessity, affecting landowners facing uncompensated acquisitions. This holding reinforces the principle of natural justice in property rights cases.