Assets of subsidiary company of corporate debtor cannot be part of resolution plan of corporate debtor: Supreme Court

BRS Ventures Investments Ltd Vs SREI Infrastructure Finance Ltd. & Anr. (Supreme Court of India) Supreme Court held that a holding company and its subsidiary are always distinct legal entities and hence assets of the subsidiary company of the corporate debtor cannot be part of the resolution plan of the corporate debtor. Facts- The 2nd respondent–Gujarat Hydrocarbon and Power SEZ Limited, is a corporate debtor. The corporate debtor approached the 1st respondent–SREI Infrastructure Finance Limited (the financial creditor), for a grant of a loan. Under the agreement dated 5th January 201...