Difference Between Financial Creditors and Operational Creditors under the Insolvency and Bankruptcy Code (IBC), 2016
1. Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) revolutionised India’s insolvency regime by consolidating and amending laws related to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals.One of the most significant aspects of the Code is the classification of creditors into two categories — Financial Creditors and Operational Creditors.This distinction determines…
