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ARTICLE · 24 SEPTEMBER 2020

Between The Lines... September, 2020

Vaish Associates Advocates
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The NCLAT has in its judgment dated August 14, 2020 in the matter of Sushil Ansal v. Ashok Tripathi and Others [Company Appeal (AT) (Insolvency) No. 452 of 2020], held that a decree holder cannot be classified ...

IndiaInsolvency/Bankruptcy/Re-Structuring
Vaish Associates Advocates
Vaish Associates Advocates
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I. NCLAT: Decree holder cannot be classified as a financial creditor for the purpose of initiating Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016

The National Company Law Appellate Tribunal, New Delhi ("NCLAT") has in its judgment dated August 14, 2020 ("Judgment") in the matter of Sushil Ansal v. Ashok Tripathi and Others [Company Appeal (AT) (Insolvency) No. 452 of 2020], held that a decree holder cannot be classified as a financial creditor for the purpose of initiating Corporate Insolvency Resolution Process ("CIRP") under the Insolvency and Bankruptcy Code, 2016 ("IBC").

Facts

Brief facts of the case are that on August 5, 2014, one Mr. Ashok Tripathi ("Respondent No. 1") and Mr. Saurabh Tripathi ("Respondent No. 2") (collectively, "Respondents") had jointly booked a unit bearing No. 0073, admeasuring 3746 sq. ft., with M/s. Ansal Properties and Infrastructure Limited ("Corporate Debtor") in one of their real

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