NCLAT upheld CoC's discretion in approving resolution plan based ...

Security Interest Priority Outweighs Vote Share in CoC Resolution Plan Approval Under Section 30(4)

February 3, 2025

Case Laws IBC AT

NCLAT upheld CoC's discretion in approving resolution plan based on security interest rather than vote share of financial creditors. The tribunal confirmed that post-amendment Section 30(4) empowers CoC to consider security interest priority while approving distribution mechanism. The dissenting financial creditor's claim for distribution based on security interest was rejected as the approved plan satisfied Section 30(2)(b) requirements by offering above liquidation value. The CoC's commercial wisdom in choosing distribution method was deemed final and binding on all creditors. The appeal challenging the Adjudicating Authority's order was dismissed, affirming that CoC's decision aligned with statutory provisions and required no interference.

View Source

← Previous Next →

NCLAT upheld CoC's discretion in approving resolution plan based ...

Security Interest Priority Outweighs Vote Share in CoC Resolution Plan Approval Under Section 30(4)

February 3, 2025

Case Laws IBC AT

You may also like:

The court held that the Committee of Creditors (CoC) rightly considered and rejected the resolution plan submitted by M/s. Saverni Neutech Pvt. Ltd. and approved the...

Approval of Resolution Plan - voting share was not sufficient enough to get any plan approved - There are only two option available as on date, first to direct the...

Resolution plan approved by Committee of Creditors (CoC) with 97.54% vote share. Commercial wisdom of CoC in approving resolution plan not to be lightly interfered with....

The summary focuses on the approval of a resolution plan by the Committee of Creditors (CoC) and the limited scope of judicial review by the adjudicating authority. The...

Seeking consideration of Revised Resolution Plan - CoC having already resolved to vote on all the Resolution Plans including the Resolution Plan submitted by the...

Direction to COC to consider ineligibility of 3rd Respondent under Section 29A of I&B Code - as per the Provisions of Law, the COC has power to take a decision with...

Approval of Resolution Plan - CIRP - when a resolution plan is approved by the CoC with more than 66% vote share and submitted before the Adjudicating Authority for...

Approval of the resolution plan - dissenting financial creditor - order of priority among the creditors as also the priority and value of the security interest of a...

IBC - though the resolution applicant has no voting right in the CoC; and it is the CoC to approve or reject the resolution plan, an opportunity ought to have been...

Direction to Resolution Professional (RP) to complete the process of voting on the resolution plan under consideration - There is sufficient reason for the Appellant/PNB...

Approval of Resolution Plan - Resolution plan met with 66% criteria or not - In this case, even though the resolution plan of M/s. KALS Group has been approved with 100%...

Permission to withdraw the Corporate Insolvency Resolution Process (CIRP) - The resolution for withdrawal of CIRP did not obtain the required percentage of voting by the...

The NCLAT upheld the Adjudicating Authority's order approving the Resolution Plan, which was approved by the CoC with 70.07% voting share. The Appellant, a dissenting...

Withdrawal of petition - Applicant and the Debtor Company have never been qualified as a “Wilful defaulter” - Section 12A prescribes that the Adjudicating Authority may...

Statutory framework under Insolvency and Bankruptcy Code (IBC) examined. Settlement proposal by appellant rejected by Committee of Creditors (CoC) u/s 12A, as it sought...

Quick Updates: