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2023 (8) TMI 488 - SC - Insolvency and BankruptcyRights of promoters - Promoters having failed in their initial duty to construct the flats or meet the obligation of the appellant still want to oppose the settlement as they claim that the appellant who made the financial contribution actually fall in the category of ‘related party’. HELD THAT:- The Promoters agreed to the terms of the agreement for the investment of the appellant and entered into an exit agreement where they could not comply with the financial obligations. The dispute arose despite that in arbitration in which an award has been passed against the promoters. Almost 150 crores plus have been awarded to the appellant, out of which the appellant, according to the successful resolution plan, would get about 90 crores less the 11 crores being sacrificed for the flat buyers and objections under Section 34 of the Arbitration Act, 1996 have not moved at all, ostensibly on account of settlement talks. The statutory scheme makes it clear that the erstwhile Board of Directors are not members of the Committee of Creditors, but they do have a right to participate in the meetings held by the Committee of Creditors and have a right to discuss all resolution plans. The plan would now have to be placed before the NCLT, where the Board Members would be represented. Thus, the Promoters cannot derive any benefit out of the order of the NCLAT which is a common order in which they were one of the appellants and it is the flat buyers who are really the interested parties who have agreed to settle in the aforesaid terms - any claims or rights of the Promoters which they may seek from the NCLAT order impugned is closed. Appeal allowed.
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