CIRP - Classification of Appellant as Operational Creditor and ...
Insolvency and Bankruptcy
February 14, 2024
CIRP - Classification of Appellant as Operational Creditor and Exclusion from COC Meetings - Financial Creditor or Operational Creditor - The Supreme Court held that the RP's classification of the appellant as an operational creditor, based on the nature of the transaction (lease premium payments), was incorrect. The court emphasized that the appellant's claim, supported by statutory provisions under the U.P. Industrial Area Development Act, 1976, constituted a secured interest over the assets of the corporate debtor, thereby warranting treatment as a secured creditor.
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