Tribunal Endorses Claim Classification, Upholds Secured Creditors' Priority in Insolvency Resolution Plan; No Payment for Operational Creditors.

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....CIRP - Classification of the claim - Claim as contingent due to pending litigation - Citing legal precedent, the Tribunal upheld the classification of the claim at a notional value of Rs. 1. - The Tribunal found that the resolution plan's payout prioritized secured financial creditors, leaving nothing for operational creditors. Considering the waterfall mechanism outlined in Section 53 of the Code, the Tribunal determined that operational creditors would receive NIL payment. The Tribunal noted that the CoC's approval of the resolution plan was based on commercial wisdom, which it couldn't interfere with.....