IBC | Lender Influencing Corporate Debtor's Policy Decisions Is Related Party, Cannot Join CoC: Supreme Court
The Supreme Court on Tuesday (October 27) held that a lender and debenture holder exercising pervasive influence over a corporate debtor
Explanation in simple terms
- What:
- The Supreme Court decided that a lender with too much power cannot join a committee of creditors.
- Who:
- The Supreme Court is the judge, while China Development Bank and Doha Bank QPSC are lenders and debenture holders.
- When:
- Reported on 28 Oct 2026.
- Why:
- The court ruled that lenders who influence the business decisions of a company are considered related parties.
- What it means:
- These specific lenders are now blocked from participating in the decision-making body of the company they lent money to.

Discussion
No comments yet.
Follow this case to join the discussion.