Composition Of Committee Of Creditors Under The IBC – A Comparative Study

In our earlier article titled, "Homebuyers now Financial Creditors: Too many cooks spoil the resolution process?", we analysed the impact of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, ("Ordinance") on the corporate insolvency resolution process, and briefly discussed how operational creditors were adversely affected by homebuyers and their dues, now being accorded the status of financial creditors and financial debt respectively. Pursuant to the Ordinance, the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 ("Amendment") came into force with effect from 6th June, 2018.

We now take a closer look at how and why operational creditors have been excluded from the committee of creditors ("CoC") by the Insolvency and Bankruptcy Code ("Code"), how it compares to global practices, and whether a relook at the constitution of the CoC is the need of the hour.