SC: Financial Creditor Can be Excluded from CoC if it Got Rid of 'Related Party' Label - 02.02.2021

Supreme Court has held that a financial creditor which is not a "related party" to the corporate debtor at present can also be excluded from the Committee of Creditors (CoC) if it is found that its removal of the "related party" label was a part of strategy to bypass the bar under Section 21(2), first proviso of the Insolvency and Bankruptcy Code, 2016 (IBC).

Tags : Supreme Court Financial Creditor

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