Resolution Plan with 86.67% CoC Approval Upholds 13.44% Payout to Dissenting Creditors Under Section 30(2)(b)

NCLAT affirmed the approval of a resolution plan where unsecured dissenting financial creditors received Rs.1.5 Crore against their admitted claim of Rs.10.94 Crore, representing 13.44% vote share. The plan secured 86.67% CoC approval within the 330-day CIRP period. The Tribunal held that the payout complied with Section 30(2)(b) of IBC, rejecting appellant's contention regarding homebuyers receiving units without haircuts. The fact that Adjudicating Authority's approval came on 14.05.2024, after the CIRP period, was deemed immaterial since the plan was approved and filed within the statutory timeframe. The NCLAT emphasized its limited jurisdiction to interfere with resolution plans and dismissed the appeal, finding no violation of statutory requirements. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X