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2018 (10) TMI 1335 - AT - Insolvency and BankruptcyCorporate Insolvency Resolution Process - Approval of the ‘Resolution Plan’ - Held that:- Requirement of minimum seventy-five percent of the voting shares of the ‘Financial Creditors’ has been reduced subsequent to the passing of impugned orders dated 23rd November, 2017 and 27th November, 2017. From plain reading of Section 21 (8) (as it then was) it is clear that all the decisions of the ‘Committee of Creditors’ is required to be taken by a vote of not less than seventy-five percent of the voting shares of the ‘Financial Creditors’, including the approval of the ‘Resolution Plan’. Sub-section (8) of Section 21 being mandatory in nature, any plan which has not been approved by the ‘Committee of Creditors’ with voting shares of seventyfive percent, cannot be approved by the Adjudicating Authority as it will be against the provisions of Section 30(2)(e) of the ‘I&B Code’ which stipulates that the ‘Resolution Plan’ does not contravene any of the provisions of the law for the time being in force. Less than seventy-five percent of the voting shares of the ‘Committee of Creditors’ in the matter of approval of the ‘Resolution Plan’ being against the provisions of clause (e) of sub-section (2) of Section 30, it cannot be approved. We uphold the decision of the Adjudicating Authority, Mumbai Bench dated 23rd November, 2017 which is under challenge in Company Appeal (AT) (Insolvency) and set aside the impugned order dated 27th November, 2017 passed by the Adjudicating Authority, Hyderabad Bench, which are under challenge in Company Appeals (AT) (Insolvency). In the result, the Company Appeal (AT) (Insolvency) is dismissed and Company Appeals (AT) (Insolvency) are allowed and the case of ‘Kamineni Steel & Power India Pvt. Ltd.’ is remitted to the Adjudicating Authority for initiation of liquidation proceeding in terms of Section 33 read with Section 34 of the ‘I&B Code’ who is required to pass order immediately.
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