NOIDA Vs Anand Sonbhadra(17th May 2022)
Forum-Supreme Court
Sub-Whether a lessor would be a financial creditor or operational creditor under the IBC Law.

The Supreme Court of India today in 186 page detailed judgement after considering all aspects of the meaning of lease including financial lease held that the Appellant in this case an operational creditor and not a financial creditor and thus was not entitled to treated as so in the CIRP.

This judgement analyses in detail the provisions of the transfer of property act as contained in Section 105 and the accounting standards in this regard and will be helpful in deciphering the interpretation of lease in other cases also.

Ramesh Patodia
17-05-2022