Mangesh Reddy ( Pune )
31-Oct-2022 09:01 AM
Payment to operational creditors in liquidation
In guideline answer of June 21 questions no 6(b) last line- it states that the unsecured financial creditors will rank above the Operational Creditors but there is no difference for payment in liquidation because difference is between Secured and unsecured creditors in fact section 30 of IBC also states that oc and dissenting creditors has to paid before payment to FC
The question is "explain the position of the unsecured Financial creditor and unsecured Operational creditor of a Corporate Debtor under Liquidation". Section 53(1)(d) is financial debts owed to unsecured creditors and not just debts owed to unsecured creditors. So, operational creditors will not be included here. Operational creditors will come under any remaining debts and dues i.e section 53(1)(f). Hence, the answer given in guideline answers is correct that unsecured Financial Creditors ranks above the Operational Creditors. Further Section 30 provides for submission of resolution plan. Both the sections are for different purpose.
Answer given by Shubhamm Sir at 01-Dec-2022 06:09 PM