No amount to be paid through partly paid ‘Redeemable Preference Shares to Operational Creditor

Gupta Textiles Vs Darshan Patel (NCLAT Delhi) Conclusion: Operational Creditor cannot be paid through partly paid ‘Redeemable Preference Shares’ as the distribution of the amount to the Operational Creditor (other than Government Departments) was clearly contrary to provisions of Section 30 (2)(b)(ii). The Adjudicating Authority had failed to advert to Section 30, sub-section (2) (b) (ii) and failed to notice that amount proposed to the Operational Creditor was clearly contrary to Section 30(2)(b)(ii). The order of Adjudicating Authority approving the Resolution Plan could not be sustaine...