# In the matter of IIFCL Mutual Fund vs. Committee of Creditors of GVR Infra & Ors.

> NCLAT judgment dated 2020-11-02. Citation: TCN-2020-NCLAT-00064. IIFCL Mutual Fund, a member of the Committee of Creditors (CoC) with a 3.94% voting share in…

- **Court:** NCLAT
- **Order date:** 2 Nov 2020
- **Citation:** TCN-2020-NCLAT-00064
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/iifcl-mutual-fund-vs-committee-of-creditors-of-gvr-infra-ors-07c05f3e

## Summary

### Background

IIFCL Mutual Fund, a member of the Committee of Creditors (CoC) with a 3.94% voting share in the resolution process of GVR Infra Projects Pvt. Ltd. (Corporate Debtor), appealed against the approval of the resolution plan submitted by UVARC (Successful Resolution Applicant). The appellant challenged the distribution mechanism outlined in the resolution plan. The appellant also contested the dismissal of its application (MA No. 99 of 2020) seeking revision of the share proportion of the resolution fund amongst the Secured Financial Creditors.

## Facts

IIFCL Mutual Fund, holding a 3.94% voting share, was a member of the Committee of Creditors (CoC) for GVR Infra Projects Pvt. Ltd. The CoC approved a resolution plan submitted by UVARC. IIFCL, despite being part of the CoC and voting in favor of the resolution plan, filed an appeal challenging the distribution mechanism outlined in the plan. IIFCL also filed MA No. 99 of 2020, seeking a revision of the share proportion of the resolution fund among the Secured Financial Creditors, which was dismissed. IIFCL argued that the allocation of Rs. 135 Crores to four Secured Creditors was inequitable and contravened Section 53 of the Insolvency and Bankruptcy Code. The total admitted claims of the Financial Creditors were Rs. 2271.08 Crores, to be settled for Rs. 352 Crores.

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## Issues and analysis

### Issue 1: Whether the Appellant, having assented to the resolution plan as a member of the Committee of …

**Ratio:** An assenting Financial Creditor is estopped from questioning the same resolution plan,

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**Reasoning:** The tribunal reasoned that the appellant, as a constituent of the CoC with a voting

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**Interpretation:** This principle emphasizes the binding nature of decisions made by the Committee

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**Application:** In this case, the appellant, IIFCL, had voted in favor of the resolution plan

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** IIFCL Mutua…
- **Respondents:** GVR Infra…; Committee of…
- **Advocates:** Anand V…; Dhairya…; +8 more

## Timeline

- **2020-11-02 — Appeal F…**: IIFCL Mutual Fund filed an appeal against…
- **2020-01-01 — MA No. 99 of 20…**: IIFCL filed MA No. 99 of 2020 seeking revision…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(3) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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