The Supreme Court of India has ruled that development rights validly terminated prior to the initiation of the Corporate Insolvency Resolution Process (CIRP) do not constitute “assets” of the Corporate Debtor protected under the moratorium provisions of Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC).
In a significant judgment delivered on November 28, 2025, a Bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan dismissed the appeal filed by A A Estates Private Limited (Corporate Debtor), holding that the IBC cannot be used to “indefinitely stall redevelopment” or obstruct the legitimate rights of cooperative housing societies and slum dwellers.
The Supreme Court upheld the decision of the…