MUNICIPAL CORPORATION OF GREATER MUMBAI (MCGM) vs ABHILASH LAL

The Supreme Court upheld the decision of the National Company Law Appellate Tribunal (NCLAT) regarding the resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC). The Court clarified that the Municipal Corporation of Greater Mumbai (MCGM) could not be classified as a Financial Creditor as it did not meet the criteria under Section 5(7) of the IBC. The Court affirmed the NCLAT's ruling that MCGM's claims were operational in nature and thus did not warrant the status of a Financial Creditor, leading to the dismissal of MCGM's appeal.