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The Hon’ble Supreme Court, in the case of JK Jute Mill Mazdoor Morcha vs. Juggilal Kamlapal Jute Mills Co. Ltd. [ Civil Appeal No. 20978 of 2017] answered whether a trade union can be said to be an ‘Operational Creditor’ for the purpose of the Insolvency and Bankruptcy Code, 2016 (“Code”). The case came up in...

In the case of Capri Global Capital Limited Vs. Value Infracon India Pvt. Ltd.(Through its Resolution Professional Mr. Sanjay Kumar Singh) & Anr.( Company Appeal (AT) (Insolvency) No. 29 of 2019) the main issue before the NCLAT was whether the financial creditor can claim voting rights against the total loan amount of the contract or...

The Insolvency and Bankruptcy Code, 2016 (“IBC”) gives power to the Adjudicating Authority (“AA”) under Section 30 of the IBC to accept or reject the approved Resolution Plan (“RP”) on few grounds. In the case of K. Sashidhar vs Indian Overseas Bank & Ors (Civil Appeal No.10673 OF 2018), the Hon’ble Supreme Court passed a common...

From the time the Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force, there has been some ambiguity regarding the differentiation of a creditor as a Financial Creditor (“FC”) or as an Operational Creditor (“OC”) and the constitutional validity of such differential treatment. As per Section 5A of the IBC, a Financial Creditor  “means any...

In the case of Sandeep Kumar Gupta Resolution Professional Vs. Stewarts & Lloyds of India Ltd. & Anr. (Company Appeal (AT) (Insolvency) No. 263 of 2017), the Appellant was appointed as the Interim Resolution Professional, in the Respondent’s (Corporate Debtor) Corporate Insolvency Resolution Process, on the recommendation of the Corporate Debtor. While he was an...

The Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force with three main objectives, i.e., “promote entrepreneurship, availability of credit and balance the interests of all the stakeholders”. To achieve and balance all three objectives, it is important that the Resolution Plan (“RP”) accepted by the Committee of Creditors (“CoC”) caters to the need of...

In the case of Canara Bank v. Sri Chandramoulishvar Spg. Mills (P) Ltd. & Another [2018 SCC Online NCLAT 389], an appeal was filed by the appellant Bank (Financial Creditor) against the order of the National Company Law Tribunal (“NCLT“). The Operational Creditor had preferred an application before the NCLT under Section 9 of the...