The NCLAT held that the statutory protection granted to ...

NCLAT upholds denial of payment to operational creditors when liquidation amount is nil.

Case Laws IBC

September 23, 2024

The NCLAT held that the statutory protection granted to operational creditors u/s 30(2)(b) of the IBC is that they shall not receive less than the specified amounts. The appellant's case did not fall u/s 30(2)(b), as the issue raised was covered by a recent NCLAT judgment in Rajat Metaal Polychem Pvt. Ltd. vs. Mr. Neeraj Bhatia and Anr. The Tribunal ruled that operational creditors are denied payment when the liquidation amount is nil, and until the legislature amends the scheme, courts cannot take any other view. Consequently, the appeal was dismissed.

View Source

← Previous Next →

The NCLAT held that the statutory protection granted to ...

NCLAT upholds denial of payment to operational creditors when liquidation amount is nil.

Case Laws IBC

September 23, 2024

You may also like:

Challenge to an approved Resolution Plan where no consideration was given to payment to an Operational Creditor. The key points are: Section 30(2)(b) mandates that...

Section 53(1) of the Insolvency and Bankruptcy Code (IBC) provides for the order of priority in the distribution of liquidation assets. Financial debts owed to unsecured...

CIRP - Validity of resolution plan - Nil Payment to Operational Creditors - waterfall mechanism - The Appellate Tribunal acknowledged the appellants' contention that...

Corporate insolvency process - Power of Board to decide amount is to be paid to the ‘Financial Creditor’ or ‘Operational Creditor’ including the liquidation value - SC...

Pecuniary Jurisdiction - whether non-payment of TDS amount is debt or not - Present is a case where the Operational Creditor has misused the process of I&B Code in...

CIRP - Classification of the claim - Claim as contingent due to pending litigation - Citing legal precedent, the Tribunal upheld the classification of the claim at a...

Validity, Viability and Feasibility of Resolution Plan - keeping in mind the payment to all the Operational Creditors, is Nil, there is no aspect of discrimination...

Approval of Resolution Plan - The Tribunal found the resolution plan’s treatment of operational creditors contrary to Section 30(2)(b) of the IBC, as operational...

CIRP - Aggrieved person or not / Locus Standi of minor operational creditor - The Appellate tribunal (NCLAT) found that the appellant, as a minor operational creditor,...

CIRP initiated against the Corporate Debtor terminated upon reaching full and final settlement with the Operational Creditor who filed Section 7 application. Quantum of...

CIRP - Classification of Appellant as Operational Creditor and Exclusion from COC Meetings - Financial Creditor or Operational Creditor - The Supreme Court held that the...

Initiation of CIRP - Operational Debt or not - Nature of transaction between the parties for taking over the Company - When the Operational Creditor acted in pursuance...

The NCLAT addressed issues regarding the approval of a Resolution Plan by Suraksha Realty Limited, focusing on the treatment of claims filed in the CIRP of the Corporate...

CIRP - Rejection of Section 9 Application on the ground of pre-existing dispute - The dispute stemmed from services provided by the Operational Creditor to the Corporate...

Maintainability of section 9 application - Operational credit or not? - In the CIRP what amount Operational Creditor i.e. Appellant is entitled or receives are different...

Quick Updates: