The Supreme Court has upheld the exclusion of ECL Finance Limited and IDBI Trusteeship Services Limited from the committee of creditors (CoC) in the insolvency proceedings of Palm Developers Private Limited, holding that ECL’s extensive contractual powers over the company’s management and business policy made it a related party under the Insolvency and Bankruptcy Code, 2016 (IBC).
A bench of Justice J. B. Pardiwala and Justice K. Vinod Chandran dismissed appeals filed by the debenture holder and the debenture trustee against the National Company Law Appellate Tribunal’s decision affirming their exclusion from the CoC. The court also closed the connected contempt petitions.The dispute arose from financing extended to Saha Infratech…