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2018 (9) TMI 1771 - AT - Insolvency and BankruptcyCorporate insolvency process - whether provisions made by the Board cannot override the provisions of I&B Code? - Held that:- In the present case, as the Successful Resolution Applicant has treated all the ‘Financial Creditors’ equally at the same level and made no discrimination, it cannot be interfered on the ground that it is in violation of Regulation 38(1)(c). Admittedly, the Central Bank of India is also a Financial Creditor who is equally situated with other ‘Financial Creditors’ who are co-members of the Committee of Creditors. Therefore, the Central Bank of India cannot discriminate with those members who dissented with the Resolution Plan and on the ground that they have not agreed with the Central Bank of India. We again make it clear that the Board has not been delegated with the power under I&B Code including Section 240 of I&B Code to decide as to what amount is to be paid to the ‘Financial Creditor’ or ‘Operational Creditor’ including the liquidation value, therefore, they should not pass any mandatory regulation forcing the Resolution Applicant(s) to discriminate between equals. It is also made clear that the provisions such as Section 53 of I&B Code, except for the purpose of finding out minimum amount to be noticed, as provided under Section 30(2)(b), cannot be relied upon at the stage of ‘Corporate Insolvency Resolution Process’, though it is open to the Board to issue guidelines as to how Section 53 is to be followed during the liquidation. The appeal is dismissed with aforesaid observations.
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