Operational Creditor

IBC Insolvency & Bankruptcy CodeWhether Trade Unions Come Under The Meaning Of An Operational Creditor Under the Insolvency and Bankruptcy Code, 2016?

June 30, 2019by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy CodeWhether the Financial Creditor Can Claim Voting Rights Against the Total Loan Amount of the Contract or Individual Amount with Respect to the Corporate Debtor, IBC

June 10, 2019by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy CodeScope Of Judicial Review By The Adjudicating Authority Over Commercial Matters Under Insolvency And Bankruptcy Code, 2016

February 10, 2019by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy CodeDemarcation Between Financial Creditors And Operational Creditors Under the Insolvency and Bankruptcy Code, 2016

January 29, 2019by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy CodeWhether Adjudicating Authority Has The Power To Appoint Resolution Professional/ Liquidator In Place Of Existing

November 30, 2018by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy CodeAdjudicating Authority Has The Ultimate Power To Reject Or Accept A Resolution Plan Under The Insolvency And Bankruptcy Code, 2016

November 25, 2018by Krishna Grandhi and GLC Team

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...

IBC Insolvency & Bankruptcy Code SARFAESIWhether Provisions Of The Insolvency And Bankruptcy Code, 2016 Prevail Over The Provisions Of The Securitization And Reconstruction Of Financial Assets And Enforcement Of Interest (SARFAESI) Act, 2002?

October 30, 2018by Krishna Grandhi and GLC Team

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...