The recent judgment by the National Company Law Appellate
Tribunal (NCLAT) in NCC Ltd. v. Golden Jubilee Hotels Pvt.
Ltd.1 sheds light on the treatment of
operational creditors under the Insolvency and Bankruptcy Code,
2016 (IBC). This ruling emphasizes the evolving judicial
perspective regarding the categorization and sub-classification of
operational creditors, highlighting the need for flexibility based
on objective considerations.
This judgment seeks to establish a significant precedent
regarding the sub-classification of operational creditors within
IBC proceedings. It affirms that such classifications are
permissible when grounded in operational necessity and commercial
wisdom and aimed at maximizing value for the…
