In Brief
Earth Infrastructures Limited (EIL) entered insolvency after defaulting on development projects. GNIDA, a property authority, had leased land to EIL's subsidiaries, not directly to EIL. The Supreme Court held that subsidiary assets cannot be included in a parent company's insolvency resolution. However, the Court lifted the corporate veil, finding EIL controlled the subsidiaries and undertook actual development. The Court allowed resolution plans from Roma and Alpha to proceed while requiring them to pay GNIDA's principal dues (excluding penalties) over 24 months without burdening homebuyers. Completion timelines commence June 1, 2026.
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