NCLAT Affirms 'Nil' Payment To Operational Creditors In Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) New Delhi addressed a case where a resolution plan proposed zero payment to operational creditors. The tribunal held that while financial creditors may prioritize their claims, operational creditors must also be considered. The ruling emphasized the need to ensure fairness in the resolution process, particularly for operational creditors whose contributions are critical to the functioning of the business. This case highlights the delicate balance between creditor classes in insolvency proceedings.