Withdrawal of application which was admitted earlier for CIRP - ...

NCLAT Rules: 90% CoC Approval Needed for Section 12A Proposal, Rejects Homebuyers' Majority as Full Support.

February 21, 2024

Case Laws Insolvency and Bankruptcy AT

Withdrawal of application which was admitted earlier for CIRP - Manner of computation of voting with regard to application u/s 12A - The NCLAT clarified that for a proposal under Section 12A to be approved, it must receive the support of 90% of the CoC's voting share. It rejected the Adjudicating Authority's interpretation that a majority vote within the homebuyers' class could be extrapolated to mean 100% support from that class for the purpose of Section 12A approval. - The NCLAT held that, since the proposal u/s 12A having not been approved by 90% vote share of the CoC, the order dated 24.05.2023 has to be set aside reviving the CIRP of the Corporate Debtor.

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Withdrawal of application which was admitted earlier for CIRP - ...

NCLAT Rules: 90% CoC Approval Needed for Section 12A Proposal, Rejects Homebuyers' Majority as Full Support.

February 21, 2024

Case Laws Insolvency and Bankruptcy AT

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