The National Company Law Tribunal (NCLT), Mumbai Bench of Lakshmi Gurung (Judicial Member) and Hariharan Neelakanta Iyer (Technical Member) has held that pledged shares held by the Corporate Debtor in its subsidiary company are assets of the Corporate Debtor and, therefore, cannot be invoked by the pledgee during the Corporate Insolvency Resolution Process due to the bar under Section 14 of the IBC.
The Interlocutory Application has been filed by Asset Reconstruction Company (India) Limited (Applicant) under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Rule 11 of the National Company Law Tribunal Rules, 2016 (NCLT Rules) seeking to exclude the pledged shares from the assets of the Corporate…