The National Company Law Appellate Tribunal (NCLAT) New Delhi bench comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has observed that the assets of a subsidiary company cannot be treated as part of the assets of its holding company in a Corporate Insolvency Resolution Process (CIRP). The Tribunal held that the Adjudicating Authority does not have the jurisdiction to direct fresh valuation of such assets when they are owned by the subsidiary and not the Corporate Debtor.
The Tribunal noted that since the subsidiary was in liquidation under laws of Singapore, the courts at Singapore alone would have jurisdiction to adjudicate issues regarding its assets, including the sale of…
