TMI Blog2018 (9) TMI 1771X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade. It is further submitted that provisions have been made for upfront payment and 20 years time granted for redemption of the preferential shares. Otherwise, no longer time has been suggested for payment of the dues of the creditors. 3. Having heard learned counsel for the Appellant and learned counsel appearing on behalf of the Successful Resolution Applicant, we are of the view that no discrimination can be made between the Financial Creditors in the Resolution Plan on the ground that one has dissented and voted against the Resolution Plan or the other has supported and voted in favour of the Resolution Plan. 4. The right to dissent has been provided under sub-section (4) of Section 30 of the Insolvency and Bankruptcy Code, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g provision to pay liquidation value to the dissenting Financial Creditors and to provide different amount for payment to the Financial Creditors who voted in favour of such Resolution Plan, cannot be held to be valid. 7. Section 240 of I B Code relates to power of Board to make regulations. Sub-section (1) of Section 240 reads as follows:- 240. Power to make regulations. (1) The Board may, by notification, make regulations consistent with this Code and the rules made thereunder, to carry out the provisions of this Code. 8. From the aforesaid provisions of I B Code it is clear that the Board may make regulation but it should be consistent with the I B Code and rules made therein (by Central Government) to carry out the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 12. 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. 13. It is also made clear that the provisions such as Section 53 of I B Code, except for the purpose of finding out mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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