RP Entitled to Reclaim Leased EV Fleet During CIRP: NCLT Upholds Corporate Debtor’s Assets Must Be Preserved During CIRP [Read Order]

The National Company Law Tribunal (NCLT) has held that a Resolution Professional (RP) is entitled to reclaim leased electric vehicles belonging to a Corporate Debtor during the Corporate Insolvency Resolution Process (CIRP) and also stated that preservation and recovery of assets forming part of the insolvency estate is a statutory obligation under the Insolvency and Bankruptcy Code, 2016 (IBC).

The Corporate Debtor EV Lease Limited had entered into Master Lease Agreements dated December 28, 2023 and July 30, 2024 with the respondent for leasing electric vehicles. Although possession of the vehicles was transferred to the respondent for commercial use, ownership remained vested with the Corporate Debtor.

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