https://www.taxtmi.com/caselaws?id=758167 NCLAT dismissed operational creditor's challenge to approved resolution plan proposing zero payment. Court held Section 30(2)(b) requires operational creditors receive no less than liquidation entitlement, which was nil since financial creditor couldn't recover full amount. Following SC precedent in Essar Steel, NCLAT ruled commercial wisdom of Committee of Creditors cannot be interfered with when resolution plan complies with statutory requirements. Despite acknowledging harshness of zero payment to operational creditor claiming Rs.1,54,64,926, tribunal noted legislative amendment needed to improve operational creditor protection under current insolvency framework. en-us Wed, 04 Sep 2024 00:00:00 +0530 Sat, 07 Sep 2024 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758167 NCLAT dismissed operational creditor's challenge to approved resolution plan proposing zero payment. Court held Section 30(2)(b) requires operational creditors receive no less than liquidation entitlement, which was nil since financial creditor couldn't recover full amount. Following SC precedent in Essar Steel, NCLAT ruled commercial wisdom of Committee of Creditors cannot be interfered with when resolution plan complies with statutory requirements. Despite acknowledging harshness of zero payment to operational creditor claiming Rs.1,54,64,926, tribunal noted legislative amendment needed to improve operational creditor protection under current insolvency framework. Case-Laws IBC Wed, 04 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758167