Debt of Related Party Cannot Assign to Refrian From Participating in CoC: NCLAT

The NCLAT ruled that debt of a related party cannot be assigned to refrain from participating in the Committee of Creditors (CoC). This decision clarifies the rules regarding participation in the CoC and prevents manipulation of the insolvency process. The ruling ensures fairness and transparency in insolvency proceedings. This protects the interests of creditors and promotes effective insolvency resolution.