Supreme Court Rules Preference Shareholders Are Not Creditors, Bars Insolvency Petitions
In a landmark judgment, the apex court draws a clear line between investment and debt, protecting companies from insolvency proceedings by preference shareholders. NEW DELHI, October 28, 2025: The Supreme Court has delivered a significant verdict clarifying that holders of redeemable preference shares cannot be considered financial creditors under the Insolvency and Bankruptcy Code (IBC), 2016….