https://www.taxtmi.com/caselaws?id=469354 An assignee of a related party debt is not automatically barred from the Committee of Creditors merely because the debt was originally held by a related party; under Section 21(2) of the Insolvency and Bankruptcy Code, the exclusion turns on the assignee's relationship with the corporate debtor. That principle, however, does not permit an assignment used as a device to bypass the statutory bar. Where the transfer is made in bad faith after commencement of CIRP to secure CoC participation and influence the resolution process, the assignee may be treated as excluded. On the stated facts, the assignee was denied CoC membership and voting rights. en-us Tue, 11 Feb 2025 00:00:00 +0530 Mon, 15 Jun 2026 23:25:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469354 An assignee of a related party debt is not automatically barred from the Committee of Creditors merely because the debt was originally held by a related party; under Section 21(2) of the Insolvency and Bankruptcy Code, the exclusion turns on the assignee's relationship with the corporate debtor. That principle, however, does not permit an assignment used as a device to bypass the statutory bar. Where the transfer is made in bad faith after commencement of CIRP to secure CoC participation and influence the resolution process, the assignee may be treated as excluded. On the stated facts, the assignee was denied CoC membership and voting rights. Case-Laws IBC Tue, 11 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469354