The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, while adjudicating an appeal filed in the matter Greater Noida Industrial Development Authority (GNIDA) vs. Roma Unicon Designex Consortium, has held that assets of the subsidiary company cannot be dealt with in the CIRP of the holding company. A parcel of land was leased by Greater NOIDA Authority to the subsidiary of corporate debtor (Holding Company). In the CIRP of corporate debtor, the approved Resolution Plan proposed to transfer the subsidiary’s land to the successful resolution applicant, without obtaining Greater NOIDA Authority’s consent.

The Bench has set aside the orders approving the resolution plan of the successful resolution applicant. The Bench held that assets of a subsidiary company cannot be dealt with in the CIRP of holding company, without the permission of the lessor, which was the GNIDA in the instant case.