Municipal Corporation Of Greater ... vs Abhilash Lal

The Supreme Court ruled that the Municipal Corporation of Greater Mumbai (MCGM) does not qualify as a Financial Creditor under the Insolvency and Bankruptcy Code, 2016 (IBC), as it failed to establish a financial debt owed by SevenHills Healthcare (P.) Ltd. The Court emphasized that the nature of the agreement between MCGM and SevenHills did not create a financial obligation as defined under Section 5(8) of the IBC. Consequently, the appeal by MCGM against the NCLAT's decision was dismissed, affirming the resolution plan approved by the Committee of Creditors.