The Supreme Court of India, in a judgment dated October 28, 2025, has ruled that a holder of Cumulative Redeemable Preference Shares (CRPS) cannot be classified as a “financial creditor” under the Insolvency and Bankruptcy Code, 2016 (IBC). A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan dismissed Civil Appeal No. 11077 of 2025,
Preference Shareholder is Not a ‘Financial Creditor’; Non-Redemption of CRPS Not a ‘Default’ Under IBC: Supreme Court
