2019 (6) TMI 690 - AT - Insolvency and Bankruptcy

CIR Process - Voting of COC - As the voting is on, which is likely to be completed today by 5.00 p.m., we are not inclined to pass any specific order in the present I.A. No. 1857 of 2019 filed by the IDBI Bank Limited . After voting the decision if taken in terms of the earlier order passed by this Appellate Tribunal on 17th May, 2019, the Resolution Professional instead of placing the matter before the Adjudicating Authority (NCLT), will first place the decision of the Committee of Creditors before this Appellate Tribunal for further orders. We make it clear that if any of the Financial Creditor remains absent from voting, their voting percentage should not be counted for the purpose of counting the voting shares. Place the case for orders along with Interlocutory Application on 2nd July, 2019.

Summary

Issues: Voting process completion, order on the application, decision-making authority, counting of voting shares, case listing date

In the judgment, the Appellate Tribunal noted that the voting process was ongoing and likely to be completed by a specific time. Consequently, the Tribunal decided not to issue any specific order on the application filed by 'IDBI Bank Limited.' The Tribunal directed that after the completion of the voting process, if the decision aligns with the earlier order, the 'Resolution Professional' should present the 'Committee of Creditors' decision to the Tribunal for further instructions before approaching the Adjudicating Authority. The Tribunal clarified that if any 'Financial Creditor' is absent during the voting, their voting percentage should not be considered for vote counting, citing a precedent set in the 'Tata Steel Ltd. vs. Liberty House Group Pte. Limited & Ors.' case. The Tribunal scheduled the case for orders along with the Interlocutory Application on a specific date.

This judgment addresses the procedural aspects of insolvency proceedings, specifically focusing on the voting process, decision-making hierarchy, and the role of the Appellate Tribunal in overseeing the resolution process. The Tribunal's directive regarding the counting of voting shares ensures fairness and adherence to established legal principles. The reference to a previous case sets a precedent for handling similar situations, emphasizing consistency and legal precedent in insolvency matters. The clear instructions provided by the Tribunal regarding the presentation of decisions highlight the importance of proper procedure and adherence to legal requirements in insolvency cases. The scheduled listing date ensures timely resolution and effective case management, demonstrating the Tribunal's commitment to expeditious handling of matters before it.