India: Insolvency/Bankruptcy/Re-Structuring

Lenders increasingly evaluate recovery across every available layer of credit support rather than treating corporate insolvency as a standalone proceeding.

The National Company Law Appellate Tribunal (NCLAT) has delivered a clear verdict on the interplay between insolvency law and anti-money laundering enforcement. In the case Value Wise Consultancy Private Limited v. Deputy Director, Directorate of Enforcement & Ors. (Company Appeal (AT) (Ins) Nos. 1226 & 1227 of 2022), the Tribunal ruled on a question that increasingly troubles insolvency practice: once a company slips into moratorium, can it also expect protection from a separate law built to chase down criminally acquired wealth?

Indian insolvency law has evolved significantly in addressing homebuyer distress, moving from initial exclusion to statutory recognition as financial creditors, then introducing safeguards against misuse, and finally implementing project-wise resolution mechanisms.