https://www.taxtmi.com/caselaws?id=783778 Applying SC authority on s.21(2) IBC, the Appellate Tribunal held that related-party disqualification in the CoC operates only in praesenti and attaches to the creditor, not to the debt; an assignee that is not itself a related party is entitled to membership and voting unless the assignment is a mala fide device to circumvent disqualification. On facts, the assignees were independent ARCs with no common shareholding or directorial links with the corporate debtor or the earlier related-party creditor, and no evidence showed a colourable assignment. Consequently, the assignee financial creditor was held not to be a related party and was directed to be included in the CoC with proportionate voting rights; the impugned orders were modified accordingly and resolution plans were to be reconsidered by the reconstituted CoC. en-us Tue, 09 Dec 2025 00:00:00 +0530 Tue, 23 Dec 2025 07:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783778 Applying SC authority on s.21(2) IBC, the Appellate Tribunal held that related-party disqualification in the CoC operates only in praesenti and attaches to the creditor, not to the debt; an assignee that is not itself a related party is entitled to membership and voting unless the assignment is a mala fide device to circumvent disqualification. On facts, the assignees were independent ARCs with no common shareholding or directorial links with the corporate debtor or the earlier related-party creditor, and no evidence showed a colourable assignment. Consequently, the assignee financial creditor was held not to be a related party and was directed to be included in the CoC with proportionate voting rights; the impugned orders were modified accordingly and resolution plans were to be reconsidered by the reconstituted CoC. Case-Laws IBC Tue, 09 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783778