The Appellant, a related party unsecured financial creditor, ...

Unsecured related party creditor challenges approved resolution plan, alleging discrimination. Court upholds CoC's differential treatment.

Case Laws IBC

October 18, 2024

The Appellant, a related party unsecured financial creditor, challenged the resolution plan approved by the Committee of Creditors (CoC) and the Adjudicating Authority, claiming discrimination against other financial creditors. The court held that the Appellant was aware of being treated as a related party and removed from the CoC, but never challenged this treatment during the insolvency proceedings. Among financial creditors, only secured non-related creditors are being paid, while the Appellant, an unsecured related party creditor, is not entitled to payment under the IBC. Relying on the Supreme Court's judgment in M.K. Rajagopalan, the court ruled that the CoC and Adjudicating Authority rightly differentiated between related and non-related parties, and there was no infirmity in the approved resolution plan. Consequently, the Appellant's appeal was dismissed.

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The Appellant, a related party unsecured financial creditor, ...

Unsecured related party creditor challenges approved resolution plan, alleging discrimination. Court upholds CoC's differential treatment.

Case Laws IBC

October 18, 2024

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