Interpretation of Financial Creditor and Operational Creditor

Abstract

The Insolvency Resolution of India has gone through a structural change due to the economic impact when The Insolvency and Bankruptcy Code 2016 was enacted. The Code provides a procedure for the insolvency resolution within a stipulated time frame. It made it possible for the creditors and debtors to claim the debt and the concerned Authority would decide over the matter within the specified time period. The main object of this code is to save and to ease out the termination of firms from the financial and economic condition. The Economic and Financial subjects are the backbone of the code and the Adjudicating Authority, Appellate Authority and Judiciary have articulated applicable execution of the code and settled the hazy areas to give total lucidity, conviction, and consistency for the stakeholders. Through this paper, I aim to discuss the interpretation of financial creditors and operational creditors in relation to the relevant provisions and some judicial pronouncements which have helped in the legal development under the Insolvency and Bankruptcy Code, 2016.