India: Insolvency/Bankruptcy/Re-Structuring

On May 21, 2026, the Securities and Exchange Board of India (“SEBI”) issued a consultation paper proposing changes to the existing price discovery framework applicable to Initial Public Offering (“IPO”) and re-listed scrips during the pre-open call auction session on the date of IPO listing or re-listing.

India’s infrastructure story has long been associated with ambition, mega highways, renewable energy parks, airports, logistics corridors, smart cities, data centres and urban transformation projects. Over the last two decades, billions of dollars have flowed into the sector from banks, institutional lenders, sovereign wealth funds, infrastructure funds and global investors eager to participate in India’s growth trajectory.

By way of the Impugned Order, the NCLAT had set aside the National Company Law Tribunal’s (“NCLT”) approval of 3 (three) project-wise resolution plans of Earth Infrastructures Limited (“CD”). The NCLAT held that the said plans erroneously included the assets of the CD’s subsidiaries, without seeking permission for transfer from GNIDA, being the principal lessor/owner of the said assets.

In the recent case of Gloster Limited vs Gloster Cables Limited, the intersection between insolvency law and intellectual property rights was discussed by the Hon’ble Supreme Court of India wherein it decided the jurisdictional scope of National Company Law Tribunal (NCLT) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC).

The real estate sector in India has long been plagued by multiple structural problems, such as developers holding land through special purpose vehicles or subsidiaries while undertaking construction, marketing, and fund collection through a parent or associate entity.

The moratorium under section 14 of Insolvency and Bankruptcy Code, 2016 (“IBC”) and its impact on arbitration proceedings have been a subject of debate and scrutiny over the years. On one hand, the object of IBC is “maximization of the assets” of the Corporate Debtor. In furtherance of the same, when a Corporate Debtor (“CD”) is considered a going concern and an insolvency petition is admitted against the CD, there is automatic imposition of moratorium on all proceedings against the CD.