2022 (11) TMI 648 - AT - Insolvency & Bankruptcy
Validity of approved Resolution Plan - Authorized Representative on behalf of majority of home buyers represented - Appellant has claimed that resolution plan, which was approved by the Adjudicating Authority, was non-compliant with the provisions of section 30(1) and 30(2) of the IBC and suffers from serious irregularities and is fraught with surreptitious amendments and insertions which are prejudicial to the genuine and legitimate interests of the members of the Committee of Creditors (CoC).
HELD THAT:- A perusal of the provisions relating to selection of Authorised Representative, the manner and modality of her/his participation in the CoC meetings to represent the views of the financial creditors in class is provided very clearly and elaborately in the IBC and the CIRP Regulations. The Authorised Representative so selected to participates in the CoC meetings as well as in decision making in the CoC, he does so on behalf of all the home allottees/homebuyers and the view of individual homebuyer is therefore subsumed in the majority (of more than 50%) decision coming through that process when the financial creditors in class express views and voted in any matter. This view is then placed before the CoC by the Authorised Representative.
The Authorised Representative’s primary duty and responsibility is to present the views of the financial creditors in class in the CoC meetings. We note that there is no deficiency or irregularity pointed out by the Learned Counsel for Appellant in the selection of the Authorised Representative. The fifteen Appellants in the present appeal are homebuyers. The Respondent No. 1 has stated that out of these 15 appellants, the name of one homebuyer Mr. Sharad Bhatnagar does not appear in the record of CoC - it is clear that a miniscule number of homebuyers have come before us as applicants and out of this small number, six have not even cared to cast their vote, have to sail with the decision of the majority of homebuyers. This is the scheme of IBC.
Even if some of the homebuyers have not voted in favour of the plan, but the majority (more than 50%) have voted in favour of the resolution plan approving the same, the dissenting homebuyers who are in minority have to go along with the views of the majority - The appeal is disposed of on the ground of non-maintainability.