Aasaan Global Trade Vs. Vasudevan & Ors.

On plain reading of Section 5(24) (h) – ‘related party’ in relation to a corporate debtor, we find that related party is any person on whose advice, directions or instructions, a director, partner or manager of the corporate debtor is accustomed to act. The said provision cannot be made applicable in relation to the 2nd Respondent, who is also a Financial Creditor and in agreement referred to above, he is not supposed to give any advice, directions or instructions to the director or partner or manager of the corporate Debtor. Even if it is accepted that he is an agency of the Corporate Debtor, he has to act on the directions of the Corporate Debtor and not to give advice.