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2022 (5) TMI 989 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors or Operational Creditors - existence of debt and dispute or not - whether the decree holder M/s Prashant Electricals Ltd who holds a decree against the Corporate Debtor M/s VETPharma Ltd qualifies as a Financial Creditor or an Operational Creditor? - Section 8 and 9 of Insolvency and Bankruptcy Code read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - HELD THAT:- The Hon’ble Supreme Court of India in the matter of SUBHANKAR BHOWMIK VERSUS UNION OF INDIA & ANR. [2022 (5) TMI 893 - SC ORDER] have held that decree holder as a class of Creditors are separate from Financial Creditors and Operational Creditors. The conclusion, therefore, is that IBC treats decree holders as a separate class of Creditors and it does not fall in the category of either a “Financial Creditor” or an “Operational Creditor”. The conclusion, therefore, is that IBC treats decree holders as a separate class of Creditors and it does not fall in the category of either a “Financial Creditor” or an “Operational Creditor”. In this instant Petition, the decree holder is neither a Financial Creditor nor an Operational Creditor. Therefore, as per Section 6 of IBC, the decree holder by law is not entitled to initiate CIRP against the Corporate Debtor - Petition dismissed.
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