NCLAT appealed to the Govt. & IBBI to examine the need to change the legislative scheme on payment to Operational-Creditors.

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NCLAT appealed to the Govt. & IBBI to examine the need to change the legislative scheme on payment to Operational-Creditors.

 

Recently, NCLAT appealed to the Govt. & IBBI to examine the need to change the legislative scheme on payment to Operational-Creditors.

The case details is as under:

Damodar Valley Corporation

vs.

Dimension Steel and Alloys Pvt. Ltd.


Company Appeal (AT) (Insolvency) No. 62 of 2022

Short Overview of the case:

  1. NCLAT dismisses appeal filed by Corporate Debtor’s electricity supply provider (‘Appellant’/‘Operational Creditor’) challenging NCLT order approving the resolution plan submitted by the Respondent and directing the Appellant to restore the electricity connection to Corporate Debtor’s premises.

2. However, observing that the Operational Creditors have been given only a minuscule of their admitted claim to the extent of only 0.19%, and as the law stands today, no exception can be taken to such plans.

3. NCLAT appealed  the Government and the IBBI to examine as to whether there are any grounds for considering change in the legislative scheme towards the payment to the Operational Creditors, which also consist of Govt. dues and other statutory dues.

 

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