Trade Unions can file as operational creditors under IBC: Supreme CourtApril 30 2019
While setting aside an NCLAT ruling, the Supreme Court has held that a trade union, for the purpose of triggering insolvency, can be an operational creditor (JK Jute Mill Mazdoor Morcha vs Juggilal Kamlapat Jute Mills).
The Court was hearing an appeal against a decision which rejected a Section 9 application filed by a trade union. The trade union had issued a demand notice to the corporate debtor, Juggilal Kamlapat Jute Mills, on behalf of 3000 workers and filed an application at the NCLT. The NCLT declined . . .
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