Bank of Baroda Vs IDBI Bank Limited (NCLAT Delhi)
NCLAT Delhi held that post approval of Resolution Plan, the Committee of Creditors [CoC] itself is also bound by its finality and cannot be allowed to tinker with or modify the resolution plan including mechanism of distribution. Accordingly, the appeal is dismissed.
Facts- CIRP of Reliance Communications Infrastructure Limited commenced vide order dated 26.09.2019. Reliance Projects & Property Management Services Limited; Respondent No.3 herein, submitted a resolution plan. On the basis of e-voting the resolution plan was approved by 67.97% vote share of the CoC. Appellant – Bank of Baroda was one of the members of the CoC who approved the resolution plan. The IDBI Bank, State Bank of India and certain other financial institutions dissented the resolution plan. On 31.08.2021, the Resolution Professional filed an application u/s. 30(6) of the I&B Code for approval of the resolution plan.
The Bank of Baroda in its capacity as Assenting Financial Creditor filed an application on 02.01.2022 before the Adjudicating Authority praying for direction to the CoC to convene a meeting on the proposal for reallocation of distribution of proceeds under the resolution plan concerning the loan extended to Reliance Bhutan Loan.
On 17.10.2023, the Adjudicating Authority directed the Resolution Professional to convene a meeting of the CoC to consider the manner of reallocation of payments to be made to the financial creditors. The Resolution Professional convened meeting of the CoC, where the resolution for reallocation and reassignment of Reliance Bhutan Loan was passed with 67.55% majority. IDBI Bank and State Bank of India dissented to the proposed reallocation objecting to the reallocation.
