The NCLAT determined that dissenting financial creditors are ...

Dissenting Financial Creditors Entitled to Pro-Rata Share of Resolution Value Under Section 30(2)(b)(ii) of I&B Code

April 2, 2025

Case Laws IBC AT

The NCLAT determined that dissenting financial creditors are entitled to a pro-rata share of the resolution value rather than merely the liquidation value when the resolution value exceeds liquidation value. The tribunal ruled this approach is "fair and equitable" under Section 30(2)(b)(ii) of the I&B Code. The appellant (RBL Bank) was awarded Rs. 42.09 Crores, with all dissenting FCs to receive proportionate shares of the resolution plan value. Regarding payment priority, the NCLAT held that dissenting creditors must be paid first, but on a pro-rata basis when payments come in installments. The tribunal ordered Respondent No. 1 to remit the determined amount to the Resolution Professional by March 31, 2025, for distribution among financial creditors as detailed in the plan.

View Source

← Previous Next →

The NCLAT determined that dissenting financial creditors are ...

Dissenting Financial Creditors Entitled to Pro-Rata Share of Resolution Value Under Section 30(2)(b)(ii) of I&B Code

April 2, 2025

Case Laws IBC AT

You may also like:

Approval of Resolution Plan - The Tribunal found the resolution plan’s treatment of operational creditors contrary to Section 30(2)(b) of the IBC, as operational...

NCLAT dismissed an appeal u/s approval of Resolution Plan by dissenting Financial Creditors objecting to Homebuyers receiving flats without price escalation. Held that...

Approval of Resolution Plan - extinguishment of security interest and the guarantees - Resolution Plan in question has consciously dealt with securities and personal...

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...

Exclusion of commercial spaces from the assets of the Corporate Debtor and the entitlement of dissenting Financial Creditors u/s 30(2)(b) of the Insolvency and...

Approval of Resolution Plan - CIRP process - dissenting financial creditors - No financial creditor either assenting or dissenting can challenge a Resolution Plan, as...

Challenge to an approved Resolution Plan where no consideration was given to payment to an Operational Creditor. The key points are: Section 30(2)(b) mandates that...

CIRP - Resolution Plan - The Resolution Applicant having himself expressed not insist for assignment of Personal and Corporate Guarantees and to be continued with the...

The NCLAT upheld the Adjudicating Authority's interpretation of Clause 21 of the resolution plan, confirming that dissenting financial creditors must receive their...

NCLAT ruled on NCLT's authority to modify resolution plans under IBC. Court held NCLT's powers do not extend to examining CoC's commercial wisdom or conducting...

Consideration of Scheme of Compromise or Arrangement - no opportunity was given to Respondent Nos.2 and 3 to explain and clarify their Scheme before Financial Creditors...

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...

NCLAT dismissed appeal regarding distribution of liquidation proceeds under IBC's waterfall mechanism. Following failed CIRP, dispute arose over distribution method -...

CIRP proceedings - Financial Creditors - Related party - while the default rule under the first proviso to Section 21(2) is that only those financial creditors that are...

Approval of Resolution plan - It is settled position in Law that provisions in a Statute would operate prospectively unless the retrospective operation is expressly...

Quick Updates: