Bom HC: Civil Court Can Invoke Sec 151 CPC to Dismiss a Suit as Infructuous if Cause of Action Ends  ||  Kerala HC: Arrest Grounds Need Not Be Shared With Foreigner’s Family If FRRO Or Embassy is Informed  ||  Delhi HC Granted Interim Relief to JioStar in a Dispute over Legends League Cricket Broadcast Rights  ||  SC: Dishonour of a Post-Dated Cheque Alone Does Not Establish Dishonest Intent For Cheating  ||  SC: Disciplinary Proceedings Started During Service May Continue After Retirement If Rules Allow  ||  Supreme Court: Earning Interest on a Bank Deposit Does Not Make it a Commercial Purpose  ||  CCI Dismisses Complaint Against Rapido over Use of Private Vehicles in Bike Taxi Service  ||  Allahabad HC: State Must Protect Individuals Threatened for Conducting Prayers in Private Spaces  ||  Madras HC: Habeas Corpus Petition Cannot Be Used if Wife Voluntarily Elopes with Another Man  ||  Calcutta High Court: Post-VRS Service Benefits Cannot be Denied; Ex-Employees Entitled to Arrears    

SC: Corporate Debtor Only Offering Security by Pledging Shares Not a Financial Creditor - (04 Feb 2021)

INSOLVENCY

Supreme Court has held that if a corporate debtor has only offered security by pledging shares, without undertaking to discharge the borrower's liability, then the creditor in such a case will not become 'financial creditor' as defined under the Insolvency and Bankruptcy Code, 2016(IBC). The Court has held that such a creditor could be a secured creditor but will not be a financial creditor under the IBC entitled to take part in the insolvency resolution process.

Tags : SUPREME COURT   CORPORATE DEBTOR  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved