Mr. X, is a Director and holds 15 percent shares in HRK Limited and 1 percent equity share in ABC Limited, and his father, Mr. Y holds 3 percent equity shares in ABC Limited, subsequently insolvency proceedings are insti

According to section 5(24) of the Insolvency & Bankruptcy Code, a "related party", in relation to a corporate debtor, means a director or partner of the corporate debtor or a relative of a director or partner of the corporate debtor; key managerial personnel of the corporate debtor or a relative of key managerial personnel of the corporate debtor; a limited liability partnership or a partnership firm in which a director, partner, or manager of the corporate debtor or his relative is a partner, a private company in which a director, partner or manager of the corporate debtor is a director and holds along with his relatives, more than two per cent. of its share capital; a public company in which a director, partner or manager of the corporate debtor is a director and holds along with relatives, more than two per cent. of its paid-up share capital; anybody corporate whose board of directors, managing director or manager, in the ordinary course of business, acts on the advice, directions or instructions of a director, partner or manager of the corporate debtor; any limited liability partnership or a partnership firm whose partners or employees in the ordinary course of business, acts on the advice, directions or instructions of a director, partner or manager of the corporate debtor; any person on whose advice, directions or instructions, a director, partner or manager of the corporate debtor is accustomed to act; a body corporate which is a holding, subsidiary or an associate company of the corporate debtor, or a subsidiary of a holding company to which the corporate debtor is a subsidiary; any person who controls more than twenty per cent. of voting rights in the corporate debtor on account of ownership or a voting agreement, any person in whom the corporate debtor controls more than twenty per cent. of voting rights on account of ownership or a voting agreement; any person who can control the composition of the board of directors or corresponding governing body of the corporate debtor, any person who is associated with the corporate debtor on account of- participation in policy making processes of the corporate debtor; or having more than two directors in common between the corporate debtor and such person; or interchange of managerial personnel between the corporate debtor and such person; or provision of essential technical information to, or from, the corporate debtor Explanation to section 5(24A) of the Insolvency & Bankruptcy Code provides "relative", with reference to any person, means anyone who is related to another, in the following manner, namely: - (iv) father, In light of definition of relative and clause (e) above, ABC Limited is a "related party" of HRK Limited as Mr. X is a director in HRK Limited and Mr. X together with Mr. Y (father) holds more than 2 percent of the equity share capital of ABC Limited.