To Discriminate or Not to Discriminate: NCLAT’s ruling on differential treatment of the creditors

Chetan Saxena, 4th-year student, Institute of Law, Nirma University.

Introduction

The National Company Law Tribunal [NCLAT] on February 28th, 2020 in Pacific World Shipping PTE Ltd. v. Dadi Impex Pvt. Ltd. and Ors. ruled that the tribunal cannot examine the commercial wisdom of the Committee of Creditors [CoC] and refuted the appellants’ argument of discriminatory treatment of the Operational Creditors as supposed to that of the Financial Creditors.

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