Comment on the correctness of the following factual situations or statements referring applicable provisions of the IBC, 2016 and Regulations made thereunder: In a Corporate Insolvency Resolution Process, there were no F

Incorrect As per IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 where the corporate debtor has no financial debt or where all financial creditors are related parties of the corporate debtor, the committee formed under this Regulation shall consist of members as under - eighteen largest operational creditors by value: Provided that if the number of operational creditors is less than eighteen, the committee shall include all such operational creditors; one representative elected by all workmen other than those workmen included under sub-clause (a); and one representative elected by all employees other than those employees included under sub-clause (a). Hence, the committee is not validly constituted pursuant to the above provisions.