06 Aug, 2025
Supreme Court Clarifies: IBC Moratorium Doesn’t Stop Corporate Debtors From Voluntarily Returning Leased Property
New Delhi | August 6, 2025
In a crucial interpretation of the Insolvency and Bankruptcy Code, the Supreme Court of India has ruled that the moratorium imposed during insolvency proceedings does not restrict a corporate debtor from voluntarily handing over possession of leased property to the lessor—provided it is done with approval from the Committee of Creditors (CoC).
The ruling comes in response to a legal dispute where a resolution professional, with the CoC’s backing,…