Alerts & Updates 11th Nov 2024

Lease Rental Dues in CIRP: Examining NCLAT’s Ruling and its Impact on Industrial Infrastructure Development Corporations (IIDCs) – Options for IIDCs and the Resolution Applicants

Authors

Mukesh ChandSenior Counsel | Mumbai

Latest Thought Leadership

Investment Funds
Alerts & Updates 29th Jul 2026

IFSCA Informal Guidance Addresses Use of PSP Payment Accounts for Fund Subscriptions and Redemptions

Read More
Alerts & Updates 29th Jul 2026

Labour and Employment – Recent Judicial Developments

Read More
Investment Funds
Alerts & Updates 29th Jul 2026

The India-Mauritius DTAA Protocol and the Principal Purpose Test: Treaty Entitlement, Substance and the Post-2017 Investment Landscape

Read More
international trades
Alerts & Updates 24th Jul 2026

USTR Finalises Section 301 Forced Labour Tariffs

Read More

The treatment of lease dues during the Corporate Insolvency Resolution Process (CIRP) has emerged as a crucial yet contentious issue in India’s insolvency framework. Industrial lands leased by entities like Industrial Infrastructure Development Corporations (IIDCs) are often the cornerstone of a Corporate Debtor’s (CD) operations.

The recent NCLAT judgment in Mr. A. Guhan and Anr. vs. Ms. Sunita Umesh (Liquidator), Deltronix India Ltd. exposes the vulnerabilities of lessors, whose dues may not be recognized as CIRP costs, leaving them to rely on CoC discretion or face the uncertainties of the liquidation waterfall under Section 53 of the Insolvency and Bankruptcy Code (IBC). This gap in the IBC framework threatens not only the recovery prospects of lessors but also the continuity of industrial operations vital for the revival of distressed entities.

Click here to read the detailed update

 

Privacy Policy

As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.