Pranjal Agarwal ( Bankeyganj )
19-Sep-2026 03:52 PM
Financial Creditor and Operational Creditor
Sir I wanted to ask if supplier(OC) negotiate a debt with any person or bank and later Company (CD) defaults the payment then such other person or bank can initiate CIRP and if yes then they will be FC or OC
Hello Pranjal, I hope you are doing good in studies. Answer to your doubt: Yes, such a third party or bank can initiate CIRP, but they will strictly be an Operational Creditor (OC), NOT a Financial Creditor (FC). Under Section 5(20) of the Code, the definition of an Operational Creditor explicitly includes "any person to whom such debt has been legally assigned or transferred."
Answer given by Shubhamm Sir at 25-Sep-2026 12:08 PM