more-inThe Insolvency and Bankruptcy Code (IBC), 2016 no doubt is a path-breaking initiative in the whole reform process. Not surprisingly, it has triggered huge debate and one of the key grey areas that had emerged in a recent cases pertained to rights of the customers in an insolvency process. When the IBC 2016 was introduced, it classified company creditors into two categories — financial creditors (banks and financial intuitions) and operational creditors (suppliers and vendors). Regulation 9A created a new residuary category of creditors, namely, other creditors (all creditors other than financial and operational). “The rights and reliefs available to the customer depend upon the nature of relationship with the corporate debtor (company under insolvency process),’’ he said.

Source: The Hindu May 13, 2018 15:57 UTC