UTTAR PRADESH: The Apex Court in the case of New Okhla Industrial Development Authority versus Anand Sonbhadra declares that the NOIDA is an operational creditor under the provisions of the Insolvency and Bankruptcy Code, 2016.
The Bench held by Justice KM Joseph and Justice Hrishikesh Roy rejected the appeal filed by NOIDA against the judgment of the National Company Law Appellate Tribunal wherein NCLAT held that the NOIDA is an operational Creditor under IBC and cannot be considered as a Financial Creditor of the Corporate Debtor under the provisions of the Insolvency and Bankruptcy Code, 2016.
NOIDA filed an appeal against both these orders passed by NCLAT and a question was framed by the Supreme Court as to
“Whether the appellant is entitled to be treated as a financial creditor within the meaning of the IBC”
Contrary, the Supreme Court observed the hinting toward a prospective amendment by the Central Government to classify NOIDA as a Financial Creditor and held that;
“Therefore, we would find on the whole that the appellant is not the financial lessor under section 5(8)(d) of the IBC. No doubt we would observe that we have arrived at the findings based on the prevailing statutory regime. Needless to say, there is always power to amend the provisions which essentially consist of the Indian Accounting Standards in the absence of any rules prescribed under Section 5(8)(d) of the IBC by the Central Government”
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