The Supreme Court of India has set aside a judgment of the National Company Law Appellate Tribunal (NCLAT) and restored the resolution plans for stalled real estate projects of Earth Infrastructures Limited (EIL). In a significant ruling, the Court applied the doctrine of “piercing the corporate veil” to hold that the assets of subsidiary companies could be dealt with in the insolvency proceedings of the holding company when they are “inextricably connected.”
The Division Bench, comprising Justice Sanjay Kumar and Justice Alok Aradhe, also directed the Greater Noida Industrial Development Authority (GNIDA) to waive penal interest, penal charges, and time-extension penalties, citing GNIDA’s “persistent inaction and…