https://www.taxtmi.com/caselaws?id=750858 NCLAT held that the resolution plan approved by the Adjudicating Authority violated Section 30(2)(b)(ii) of IBC regarding payment to operational creditors. The tribunal emphasized that while commercial wisdom of Committee of Creditors has paramount importance with limited judicial review, statutory non-compliance cannot be overlooked. Citing SC precedent, NCLAT ruled that operational creditors must be paid in cash priority over financial creditors, not through equity distribution. The Adjudicating Authority's order dated 09.11.2023 was modified to ensure compliance with Section 30(2)(b)(ii) regarding operational creditor distribution, while rest of the resolution plan remained affirmed. en-us Mon, 01 Apr 2024 00:00:00 +0530 Tue, 02 Apr 2024 08:07:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750858 NCLAT held that the resolution plan approved by the Adjudicating Authority violated Section 30(2)(b)(ii) of IBC regarding payment to operational creditors. The tribunal emphasized that while commercial wisdom of Committee of Creditors has paramount importance with limited judicial review, statutory non-compliance cannot be overlooked. Citing SC precedent, NCLAT ruled that operational creditors must be paid in cash priority over financial creditors, not through equity distribution. The Adjudicating Authority's order dated 09.11.2023 was modified to ensure compliance with Section 30(2)(b)(ii) regarding operational creditor distribution, while rest of the resolution plan remained affirmed. Case-Laws Insolvency and Bankruptcy Mon, 01 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750858