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TMI Blog2022 (10) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... by 'Earth Buyers Association For Justice' challenging the order of the Adjudicating Authority dated 08.06.2021 approving the Resolution Plan submitted by 'M/s. Alpha Corp Development Private Limited', the Respondent No.2 herein. Brief facts necessary for deciding this Appeal are:- Corporate Insolvency Resolution Process (CIRP) commenced against the Corporate Debtor- 'M/s. Earth Infrastructure Limited' by order dated 06.06.2018. The Resolution Professional issued Form-G inviting Resolution Plans for the Corporate Debtor as a whole and project-wise also. In response, three Resolution Plans were received, of which two for Projects TOWNE & ICONIC were approved. Committee of Creditors (CoC) had taken a decision in 8th meeting, on 20.05.2019, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought on record belong to class of voters who have to go by the majority of votes as per Section 25A (3A) of the Code. Respondents further objected that the Appeal need not be entertained by this Tribunal. 3. We have heard Learned Counsel for the parties and reserved the judgment on 26.09.2022. While reserving the judgment, liberty was granted to the Counsel for the Successful Resolution Applicant to refer to relevant clauses in the written synopsis which according to the Counsel for the Successful Resolution Applicant take cares of all the homebuyers. 4. Learned Counsel for the Appellant challenging the impugned order submits that the voting on the Resolution Plan was not conducted project-wise whereas voting ought to have been conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approved by 99.97% of vote shares of CoC. The Appellant- 'Earth Buyers Association For Justice' itself is not member of the CoC. The 35 homebuyers who were sought to be brought on record, 29 homebuyers have not voted for the plan and the class of homebuyers have to sail with the majority of the votes of the homebuyers. Section 25A (3A) provides as follows:- "25A. Rights and duties of authorised representative of financial creditors. - xxx xxx xxx [(3A) Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. There is absolutely no scope for any particular person standing within that class to suggest any dissention as regards the vote over the resolution plan. It is obvious that if this finality and binding force is not provided to the vote cast by the authorised representative over the resolution plan in accordance with the majority decision of the class he is authorised to represent, a plan of resolution involving large number of parties (like an excessively large number of homebuyers herein) may never fructify and the only result would be liquidation, which is not the prime target of the Code. In the larger benefit and for common good, the democratic principles of the determinative role of the opinion of majority have been duly incorporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hone. It is sufficient to refer to clauses 2.5 and 4.1 of Part-III of the Resolution Plan for Project Earth Copia, which is as follows:- "2.5 Further, the Resolution Applicant shall in no manner be liable to pay any claim towards interest and/or assured return to any Allottee of Earth Copia Project whether admitted or pending admission with the RP." "4.1 From the perusal of the list of claims fled, the Resolution Applicant has an understanding that the claims admitted in respect of Earth Copia Project as on 01.11.2019 amount to Rs. 2,478,140,223/- representing the principal amount (excluding interest and assured return, if any). a) The Resolution Applicant proposes to satisfy all the Admitted Claims in respect of Earth Copia Project b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ABA, first transfer to any prospective buyer is free, then the Resolution Applicant shall not change any transfer fees from the prospective buyers and/or Allottees, provided, the said first transfer has not happened." 11. To the similar effect is the Resolution Plan with regard to other two projects, the plan clearly mention that Resolution Applicant proposes to satisfy all the admitted claims in respect of the project by completing the pending construction activities and handing over possession to the allottees, in the manner as proposed, and subject to terms and conditions mentioned in the Resolution Plan. 12. The above clause of the Resolution Plan does substantial justice with the homebuyers- allottees. After taking aforesaid clauses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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