IBC: Committee Of Creditors Should Include Operational Creditors

The Insolvency and Bankruptcy Code, 2016 ("IBC") is considered as an important legislation for early detection of financial sickness of any corporate debtor and to deal with such sickness in a time bound manner by allowing the implementation of the effective resolution plan, if the same is viable. After the detection of such sickness, all decisions pertaining to revival and implementation of the effective resolution plan are required to be taken by the committee of creditors (comprising of only financial creditors) ("CoC") by majority vote of not less than 66% of the voting share of the financial creditors. The operational creditors are not allowed to be a part of CoC and to vote in favour or against such resolution plan except when there is no financial creditor pertaining to the corporate debtor and such operational creditors meet the prescribed criteria under IBC. Such operational creditors have limited rights to receive notice of CoC meeting and to attend such