Analysis of NCLAT Judgement in M/s. Maruti Ferrous Pvt. Ltd. vs. Sunil Ispat & Power Ltd. & Ors.

Same treatment to the ‘Financial Creditors’ and the ‘Operational Creditors’ has to be provided in Resolution Plan.

In the view of the case background, the Adjudicating Appellate Authority was of the view that the ‘Financial Creditor’ cannot be discriminated in the manner as suggested by the Adjudicating Authority by directing to pay 100% to the ‘Operational Creditors’ who otherwise do not contribute in operation of the Company but are entitled under the existing laws. Accordingly, the Adjudicating Appellate Authority asked the Appellant to modified the ‘Resolution Plan’ by providing same treatment to the ‘Financial Creditors’ and the ‘Operational Creditors’.

Judgement link : https://nclat.nic.in/Useradmin/upload/12497823395cefb6a5d24dc.pdf