2021 (3) TMI 1240 - SC - Insolvency and Bankruptcy

Whether the order of the NCLT will have any bearing on the requisite majority required to pass a Resolution Plan under the provisions of Section 30(4) of the Insolvency and Bankruptcy Code 2016? - HELD THAT - The Resolution Plan has been approved by 100% of the voting share of the Committee of Creditors a fact highlighted by Mr Neeraj Kishan Kaul learned senior counsel for the respondents. Since the issue has been raised during the course of the submissions we permit the appellant in terms as requested before the Court to file an affidavit disclosing the order of the NCLT and the impact if any on the majority required for passing a Resolution Plan. This shall be done on or before 13 March 2021 - List the Civil Appeal on 18 March 2021.

Summary

Issues:
1. Interpretation of the impact of an NCLT order on the requisite majority for passing a Resolution Plan under the Insolvency and Bankruptcy Code 2016.

Analysis:
The Supreme Court addressed the issue raised during submissions regarding an order passed by the Mumbai Bench of the National Company Law Tribunal (NCLT) stating that certain entities recognized as financial creditors are not actually financial creditors. The Court considered whether this NCLT order would affect the necessary majority for approving a Resolution Plan under Section 30(4) of the Insolvency and Bankruptcy Code 2016. Notably, the Resolution Plan had already been endorsed by 100% of the voting share of the Committee of Creditors. The Court allowed the appellant to file an affidavit disclosing the NCLT order's impact, if any, on the majority required for passing the Resolution Plan by a specified deadline. Additionally, the respondent's counsel was permitted to file a counter-affidavit if necessary, with both parties exchanging advance copies of the affidavits. The Court scheduled the Civil Appeal for listing on 18 March 2021, indicating a thorough consideration of the matter at hand.