The Supreme Court upheld the exclusion of ECL Finance and IDBI Trusteeship Services from Palm Developers’ Committee of Creditors, finding that contractual rights established related-party involvement in policymaking. – ECL Finance Ltd. and Another v. Abhinav Mukherjee and Others
The Supreme Court has dismissed appeals filed by ECL Finance Limited and IDBI Trusteeship Services Limited, upholding their exclusion from the Committee of Creditors (CoC) of Palm Developers Private Limited under the Insolvency and Bankruptcy Code, 2016 (IBC). The Court found that contractual arrangements gave ECL substantial influence over the corporate debtor’s management and policy decisions, making it a related party for the purposes of insolvency…