There is no provision of the IBC, which mandates that the related party should be paid in parity with unrelated party – West Coast Paper Mills Ltd. Vs. Bijay Murmuria, RP of Fort Gloster Industries Ltd. and Ors. – NCLAT New Delhi
Hon’ble NCLAT held that there was no provision of the IBC, which mandates that the related party should be paid in parity with unrelated party. Any prohibition of differential payment to different class of creditors in the resolution plan is ultimately, subject to the commercial wisdom of CoC and no fault can be attached to the resolution plan merely for not making provisions for a related party, so long as provision of the IBC and CIRP regulations are met.