Whether separate class of creditors can be created under the broad category of Operational Creditors | Whether, differential treatment inter-se the same class of creditors is permissible | Whether the provisions of MSMED give protection to MSME status Operational Creditors in CIRP proceedings under the Code and Regulations – NCC Ltd. Vs. Golden Jubilee Hotels Pvt. Ltd. and Ors. – NCLAT New Delhi
December 17, 2024
Hon’ble NCLAT held that: (i) No word like “special Operational Creditor” has been defined under Section 3 or 5 of the Code or anywhere else or even in the regulations. (ii) The role of the Adjudicating Authority is to ensure that the Resolution Plan complies with the requirements of the Code especially under Section 30(2) of the Code. (iii) CoC has no role in deciding the position of the creditor either as financial or Operational Creditor and such decision in true sense cannot be treated as commercial wisdom. (iv) While the Code does not categorize any operational creditors as “special,” it does recognize different classes of operational creditors based on their claims. For instance, operational debts can include dues related to the supply of goods and services, employment-related obligations, and statutory dues payable to government authorities. However, all operational creditors are treated under the same legal framework without special distinctions within their category. (v) The legislative intent is clear that MSMEs creditors have no special rights over other creditors. (vi) NCLT had no jurisdiction to impose such conditions with regard to amounts as may be recoverable by the corporate debtor in future. Any amount receivable by the corporate debtor, being an asset of the company, would continue to remain with the Corporate Debtor upon implementation of the resolution plan.