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2020 (2) TMI 388 - AT - Insolvency and BankruptcyApproval of distribution of amounts - approved resolution plan - sub-section (4) of Section 30 of I&B Code - HELD THAT:- Amended sub-Section (4) of Section 30 came into force since 16th August, 2019. It has not been given retrospective effect but is prospective. Therefore, if the distribution is to be made by the 'Committee of Creditors', it is not necessary to follow the amended sub-section (4) of Section 30, though it was open to the 'Committee of Creditors' to follow the same principle. Therefore, the distribution cannot be alleged to be in violation of the amended sub-section (4) of Section 30 - As per amended Section 30(2)(b)(ii), the distribution is to be made in the manner as prescribed under Section 53(1) giving preference to the secured creditor. However, even at that stage no discrimination can be made between two similarly situated 'secured creditor'. If the 'Financial Creditor' do not accept the 'feasibility' and 'viability' of the plan and holds that the 'resolution plan' is discriminatory or against the provision of law, it has right to dissent during the voting and can be treated as a 'dissenting financial creditor' - a 'secured creditor' cannot claim preference over the other 'secured creditor' at the stage of distribution out of the 'resolution plan on the ground of 'dissenting' or 'assenting', 'secured financial creditor' otherwise the distribution would be held to be arbitrary and discriminatory. Section 30(2)(b)(ii) cannot be interpreted in a manner to give advantage to a 'dissenting secured financial creditor'. In fact Section 30(2)(b)(ii) has been amended only to ensure that 'dissenting financial creditor' should not get anything 'less than liquidation value' but not for 'getting maximum of the secured assets'. Appeal dismissed - decided against appellant.
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