https://www.taxtmi.com/caselaws?id=401959 The Tribunal held that the Committee of Creditors (CoC) lacked the authority to determine a creditor's status as 'Financial' or 'Operational'. The Resolution Professional (RP) was found to have erred in reclassifying the creditor based on expert opinion against the Adjudicating Authority's view. The Adjudicating Authority's decision declaring the creditor as 'Financial' was upheld due to the loan advanced against the title deed involving the time value of money. The Tribunal emphasized that the CoC's decision did not constitute commercial wisdom. The RP's actions were deemed arbitrary, and the CoC's decisions to reclassify the creditor were deemed beyond their powers. en-us Fri, 18 Dec 2020 00:00:00 +0530 Mon, 21 Dec 2020 11:06:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=401959 The Tribunal held that the Committee of Creditors (CoC) lacked the authority to determine a creditor's status as 'Financial' or 'Operational'. The Resolution Professional (RP) was found to have erred in reclassifying the creditor based on expert opinion against the Adjudicating Authority's view. The Adjudicating Authority's decision declaring the creditor as 'Financial' was upheld due to the loan advanced against the title deed involving the time value of money. The Tribunal emphasized that the CoC's decision did not constitute commercial wisdom. The RP's actions were deemed arbitrary, and the CoC's decisions to reclassify the creditor were deemed beyond their powers. Case-Laws Insolvency and Bankruptcy Fri, 18 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=401959