Related Party Can't Be Allowed Backdoor Entry Into CoC On Account Of Its Operational Debt: NCLT Kolkata

The NCLT Kolkata bench ruled that related parties with operational debt cannot be allowed backdoor entry into the Committee of Creditors (CoC) during insolvency proceedings. The judgment came after objections to a related party’s inclusion in the CoC, with the tribunal noting that such inclusion undermines the CoC’s independence. This ruling reinforces the principle of unbiased creditor representation in insolvency cases.