With all crucial decisions held up for over two months due to a legal tangle, Japyee Infratech lenders have moved the National Company Law Tribunal (NCLT), the designated bankruptcy court, to seek the passage of key resolutions by the committee of creditors — comprising home buyers, banks and fixed deposit holders — if a majority of the members agree to the proposal instead of two-thirds stipulated inthe Insolvency & Bankruptcy Code (IBC).
In the resolution to appoint a resolution professional, for instance, only 17.2% of the home buyers had voted in favour of the move, while all the lenders with a combined cote share of 41.7% backed the proposal.
The lenders have relied on an order passed by the NCLT’s bench to argue for interpreting the IBC to allow for majority of the votes to decide on key resolutions. As reported first by TOI on October 2, the bench had ruled that it would go ahead and appoint a resolution professional even though only half the members of the committee of creditors had voted for resolution moved, against the requirement of 66% backing it. The tribunal had observed that the idea was to prevent liquidation and go for resolution, which is the objective of the two-year-old IBC.
Source: Times Of India, November 19,2018