Brief Overview:
IBC provides for 66% voting in favour as approval threshold of the COC, irrespective of whether it is a single-member or multi-member, is sacrosanct and binding on all stakeholders.
Technical Details:
Even if other creditors are aggrieved by the amounts proposed to be paid to them under the resolution plan, the Adjudicating Authority with the limited powers of judicial review available to it, cannot substitute its views with the commercial wisdom of the COC.
So long as it musters more than 66% voting share, there can be no fetters on the commercial wisdom of the COC.
JC takeaway:
Commercial wisdom cannot be weighed or measured in terms of single-member COC or multi-member COC. Furthermore, IBC does not encompass the concept of oppression of minority creditors.
For further details, please see:
Yogesh Kelkar and Ors. v. RP of Anudan Properties Pvt. Ltd.
For any queries/clarifications, please feel free to ping us and we will be happy to chat:
