SC: Preference Shares are Not Financial Debt: CRPS Holders Cannot Invoke IBC u/s 7 Against Issuer

EPC Constructions India Limited Vs Matix Fertilizers And Chemicals Limited (Supreme Court of India) SC: Redeemable Preference Shareholders Are Investors, Not Creditors—IBC Petition Not Maintainable-Conversion of Dues Into CRPS Extinguishes Debt; No Default Under IBC, Holds Apex Court Issue Whether holders of Cumulative Redeemable Preference Shares (CRPS) can be treated as “financial creditors” under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) so as to initiate CIRP against the issuing company for non-redemption. Facts in Brief EPC Constructions India Ltd (formerly Essa...