The National Company Law Appellate Tribunal, New Delhi ruled that GNIDA is an operational creditor and not financial creditor.
The tribunal observed that there is no error in the order because the secured creditor can be both operational creditor as well as the financial creditor but financial creditor is altogether different from the operational creditor and since it has been held that a similar authority, namely, Noida Authority is an operational creditor, claiming the same relief on the basis of the lease deed, the Appellant, namely, GNIDA cannot be held to be a Financial Creditor on the same facts and has rightly been held to be an operational creditor.
Facts
The appeal is filed by the Greater Noida Industrial Development Authority (GNIDA), a statutory Authority, constituted under the provisions of the U.P. Industrial Area Development Act, 1976, being aggrieved against the order by which an application filed by the Appellant, under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 for upholding the Applicant as Financial Creditor, has been dismissed.
Submissions
The Appellant has prayed that he should be treated as Financial Creditor and not the Operational Creditor but it has been argued by the Appellant orally as well as in his written submissions it is mentioned that the Appellant is a secured creditor.
Counsel for the Respondent submitted that in the case of Noida Vs. Anand Sonbhadra, on the same ground, which are raised by the Appellant and were raised by the Noida Authority, it has been held by the Supreme Court that Noida authority is an Operational Creditor.
Conclusion
The tribunal dismissed the appeal while holding that GNIDA is an operational creditor and not financial creditor.
Case Details
Case Name: Greater Noida Industrial Development Authority V/S Anand Sonbhadra
Citation: Comp. App. (AT) (Ins) No. 868 of 2021 & I.A No. 2316, 2317 of 2021
Court: NCLAT, New Delhi
Judge: Justice Rakesh Kumar Jain Member (Judicial) and Mr. Indevar Pandey Member (Technical)
Decision Date: 08/08/2024