Whether the legislative scheme that is contained in section 7 and section 9 of IBC, differentiating between financial creditors and operational creditors respectively as regards the Code's objectives and notice on defaul

In the case of Swiss Ribbons, it was held by the Hon'ble Supreme Court that financial creditors are involved with the assessment of viability of corporate debtors and are, therefore, better equipped to engage in restructuring of loans as well as reorganization of the corporate debtor's business in the event of financial stress. These differentiations are not only intelligible, but directly relate to the objects sought to be achieved by the Code. Insofar as Section 7 of the Code relatable to financial creditors, and Sections 8 and 9 of the Code, which relate to operational creditors are concerned, it is a fallacy to say that no notice is issued by the financial creditors on defaults made, as financial creditors are fully aware of the loan structure and the defaults that have been made. Preserving the corporate debtor as a going concern while ensuring maximum recovery for all creditors being the objective of the Code, financial creditors are clearly different from operational creditors and therefore, there is obviously an intelligible differentia between the two which has a direct relation to the objects sought to be achieved by the Code.