Settlement with Corporate Debtor doesn’t convert operational creditor into financial creditor

Capacite Infraprojects Limited Vs Jayesh Natvarlal Sanghrajka (NCLT Mumbai) NCLT Mumbai held that an operational creditor, cannot be converted into a financial creditor by way of a Settlement with the corporate debtor. Accordingly, application for classification of claim as financial creditor dismissed. Facts- The Interlocutory Application has been filed by M/s Capacite Infraprojects Limited (Applicant) seeking setting aside the classification of the Applicant’s claim and direction to the RP for re-classification of its claim as “financial creditor in a class – homebuyer” from “ot...