In the case of BRS Ventures Investments Ltd. vs. SREI Infrastructure Finance Ltd. & Anr. the Hon’ble Supreme Court of India (“Supreme Court”) held that simultaneous insolvency proceedings against a borrower and a corporate guarantor can be initiated for the same debt and default; and that assets of a subsidiary do not form part of the corporate insolvency resolution process (“CIRP”) of its holding company.

Brief Facts

In the ever-evolving landscape of corporate governance and insolvency regulation, the Ministry of Corporate Affairs (MCA) stands at the forefront, orchestrating strategic reforms to fortify the framework governing businesses in India. The idea for seeking reforms in the Insolvency and Bankruptcy Code (IBC) are the dual imperatives of enhancing corporate governance standards and streamlining insolvency processes to foster economic resilience and growth.