Supreme Court holds that rent receivables assigned to a lender would not be assets of the borrower and fall outside the scope of the NCLAT’s Order freezing IL&FS’s assets and security

In a recent decision in the case of Infrastructure Leasing and Financial Services Ltd. v. HDFC Bank Ltd. and Another, the Supreme Court of India (“Supreme Court”) has held that the rents receivable by a borrower which was assigned to a lender of a lease rental discounting facility would not be treated as an asset of the borrower, and thus fall outside the purview of the asset and security freeze order of the National Company Law Appellate Tribunal (“NCLAT”).

Brief Facts

Filed under:
India, Banking, Insolvency & Restructuring, Litigation, Real Estate, JSA, Power of attorney, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
Authors:
Dheeraj Nair , Tirthankar Datta , Angad Baxi , Malika Tiwari , Vedika Gandhi
Location:
India
Firm:
JSA