AIROnline 2023 SC 183 ::AIR 2023 SC (Civ) 1168

Supreme Court Of India

Hon'ble Judge(s): V. Ramasubramanian, Pankaj Mithal , JJ

(A) Insolvency and Bankruptcy Code (31 of 2016) , S.3(27), S.18(f), S.25(2)(a)— Property - Scope of the term under the IBC - Development rights created in favour of corporate debtor for consideration constitute 'property' and 'asset' under the IBC In the instant case, the Supreme Court was considering the question whether development rights of the Corporate debtor can be said to be 'property ' and 'asset' under the IBC. A bundle of rights and interests were created in favour of the corporate debtor, over immovable property for consideration. But for the payment of such consideration the ostensible owner whom the corporate debtor had provided finance and held 40% of its share capital apart from holding a Joint Development Agreement with it in respect of the property in question would not even have become the owner of the property in dispute. Held, development rights created in favour of corporate debtor constitute "property" within the meaning of S. 3(27) of the IBC. Also, since the expression "asset" in common parlance denotes "property of any kind", the bundle of rights that the Corporate Debtor has over the property in question would constitute "asset" within the meaning of Ss. 18(f) and 25(2)(a) of IBC.(Para 35) (B) Insolvency and Bankruptcy Code (31 of 2016) , S.2....