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

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

September 23, 2024

Case Laws IBC AT

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.

September 23, 2024

Case Laws IBC AT

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...

The NCLAT upheld the Adjudicating Authority's interpretation of Clause 21 of the resolution plan, confirming that dissenting financial creditors must receive their...

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...

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...

The NCLAT affirmed that the Haldia property was correctly included in the corporate debtor's liquidation estate due to the appellant secured creditor's failure to comply...

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...

NCLAT dismissed appeal concerning liquidator's fee payment under IBC 2016. Secured creditor (Bank) opted to realize security interest under SARFAESI Act without...

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...

The NCLAT determined that dissenting financial creditors are entitled to a pro-rata share of the resolution value rather than merely the liquidation value when the...

Interpretation of Regulation 21A of IBBI (Liquidation Process) Regulations, 2016 regarding secured creditor's obligation to realize security interest within stipulated...

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

NCLAT dismissed appeal challenging treatment of tax claims as operational debt under IBC resolution plan. Tribunal affirmed that Section 11E of Central Excise Act and...

Quick Updates: