Case Note & Summary
The dispute arose in the context of insolvency proceedings involving Medec Infra Private Limited and its treatment by the Resolution Professional as a related party. The appellant, claiming to be the only Financial Creditor in the Committee of Creditors (CoC), filed an appeal against the order dated 04.05.2026, which excluded it from the CoC based on this classification. The appellant sought interim relief, which was not initially considered. The Tribunal noted that the matter was already scheduled for a hearing on 29.06.2026 and decided not to entertain the appeal at that moment. However, to safeguard the appellant's interests, it ordered that the CoC should not vote on any resolutions or sell any immovable property until the next hearing. The Tribunal also allowed the appellant to request interim orders during the next hearing, leaving the final decision to the Adjudicating Authority. The appeal was disposed of with these directions.
Headnote
A) Insolvency Law - Related Party Treatment - Exclusion from Committee of Creditors - Insolvency and Bankruptcy Code, 2016 - Appellant challenged the Resolution Professional's decision to treat it as a related party, which led to its exclusion from the Committee of Creditors. The Tribunal granted interim relief to prevent any voting or sale of immovable property until the next hearing date, emphasizing the need to protect the appellant's interests. Held that the matter would be reconsidered at the next hearing (Paras 1-2).
Issue of Consideration
Whether the appellant was improperly treated as a related party, affecting its status in the Committee of Creditors.
Final Decision
The Tribunal decided not to entertain the appeal at this stage but granted interim relief by preventing the CoC from voting or selling immovable property until the next hearing on 29.06.2026.
Law Points
- Interim relief
- related party
- Committee of Creditors
- insolvency proceedings
