Supreme Court: The classification of “financial debt” and “operational debt” under IBC can only be determined upon ascertaining the real nature of the transaction.

The Hon’ble Supreme Court of India (“Supreme Court”) in Global Credit Capital Limited & Anr Vs SACH Marketing Pvt. Ltd & Anr, has established the following principles on classification of a debt under the Insolvency and Bankruptcy Code, 2016 (“Code”):

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Insolvency, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
Authors:
Dheeraj Nair , Vinod Kumar , Vishrutyi Sahni , Saibarath Seshadhri
Location:
India
Firm:
JSA