In Brief
The Municipal Corporation of Greater Mumbai (MCGM) challenged a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, for Seven Hills Healthcare (a hospital company), claiming the plan impermissibly affected MCGM's property rights. MCGM owned land that Seven Hills was developing under contract. The Court held that the resolution plan could not be approved without compliance with the Mumbai Municipal Corporation Act, 1888, which requires express corporate permission for any dealings with municipal property. Since MCGM's formal approval was never obtained, the Court set aside the approvals and allowed the appeal, holding that Section 238 of the Code (which overrides other laws) cannot override a third party's statutory right to control its own property.
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