Whether subsidiary assets can be consolidated into holding company CIRP under the IBC?

The Tribunal held that subsidiary assets cannot automatically form part of the holding company CIRP merely due to shareholding or guarantee obligations because subsidiaries and holding companies are separate legal entities.

Did the NCLAT uphold compliance with pre-existing contractual rights during CIRP?

Yes. The NCLAT upheld the Resolution Professional and CoC’s decision to honour the Right of First Refusal under existing contractual arrangements to ensure implementability of the resolution plan.

State Bank of India v. Venugopal Dhoot, REEDLAW 2026 NCLAT Del 05540

May 22
1 min read

REEDLAW Legal News Network | Published on 22 May 2026 | 🔗 Find Shareable Link — **REEDLAW Legal News Network | Published on 22 May 2026 |** 🔗 **Find Shareable Link**

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Assets of subsidiaries, including foreign assets, cannot be included in the CIRP of the holding corporate debtor, and the Committee of Creditors’ commercial wisdom—particularly regarding asset distribution, structuring of resolution, and compliance with pre-existing contractual rights—remains paramount and non-justiciable except in cases of legal violation.

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1 Comment

Sivananthan Thiyagarajan

Jun 11

When Banks use all avenues to sell the secured assets of the borrower for very low values are they not responsible to disclose the sale values to the borrowers? It appears that honest defaulters' tears are not cared by the lenders. Price of Justice is unknown to a poor common citizen.