Initiation of a company-wide CIRP against a real estate developer is legally unsustainable where the debt and default arise from a single project, NCLAT holds, reiterating that project-wise insolvency remains the governing norm under the IBC.

The Appellate Tribunal held that a private sale conducted through a Swiss Challenge process during liquidation is unsustainable in the absence of prior approval of the Adjudicating Authority and where the process is structured with unreasonable timelines and restrictive EMD conditions that stifle competition.

The Supreme Court directed the transfer of a pending NCLAT company appeal to the Principal Bench to ensure fair and expeditious adjudication. Broader administrative and public-interest concerns raised in a writ petition were treated as a representation for the Chief Justice of India’s consideration.

The High Court clarified that once an auction notice is issued under the SARFAESI Act, the borrower’s statutory right of redemption stands extinguished, and subsequent payments or settlement offers cannot invalidate the sale process or restrain completion of enforcement proceedings.

India’s insolvency regime may be poised for a structural shift as proposed amendments to the IBC contemplate asset-wise and business-unit resolution plans. This analysis examines how multiple bids could reshape CIRP outcomes, enhance value maximisation, and recalibrate creditor strategy while balancing risks, finality, and systemic stability.