IBC | Preference Share Holders Are Investors, Not 'Financial Creditors'; Can't File Insolvency Petition : Supreme Court

The Supreme Court on Tuesday (October 28) held that holders of Cumulative Redeemable Preference Share (“CRPS”) are investors, and not financial creditors, and therefore cannot initiate insolvency proceedings under Section 7 of the IBC, since non-redemption of such shares does not constitute a “default” under the IBC. “It is well settled in Company Law that preference shares are part...