SC: Preference Shareholders Classified as Investors, Cannot Approach Court as Financial Creditors - 29.10.2025

Supreme Court held that holders of Cumulative Redeemable Preference Shares (CRPS) are investors, not financial creditors, and cannot initiate insolvency proceedings under Section 7 of the IBC, as non-redemption of such shares does not amount to a “default” under the law.

Tags : Cumulative Redeemable Preference Shares Investors Financial Creditors

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