# In the matter of Jaypee Infratech Ltd. C A No. 223 & 266-2018 In CP No.(IB) 77-ALD-2017

> NCLT judgment dated 2018-12-13. Citation: TCN-2018-NCLT-00092. The case involves a dispute regarding the procedure for determining the voting share for…

- **Court:** NCLT
- **Order date:** 13 Dec 2018
- **Citation:** TCN-2018-NCLT-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jaypee-infratech-ltd-c-a-no-223-266-2018-in-cp-noib-77-ald-2017-cb822902

## Summary

### Background

The case involves a dispute regarding the procedure for determining the voting share for passing resolutions in the Committee of Creditors (COC) during the Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Ltd. The issue arises because the COC comprises multiple classes of Financial Creditors, including home buyers, lenders, and fixed deposit holders, each with varying voting percentages. Several voting items tabled before the COC have failed to pass due to not meeting the minimum voting threshold under the Insolvency and Bankruptcy Code (IBC). The home buyers, who constitute a significant portion of the voting share, have shown low participation in voting, leading to a standstill in the CIRP.

## Facts

IDBI Bank filed a Corporate Insolvency Resolution Process (CIRP) application against Jaypee Infratech Ltd. (JIL) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated on August 9, 2017. Home buyers, who had invested in JIL's projects, filed a writ petition in the Supreme Court of India. The Supreme Court disposed of the writ petitions and directed the recommencement of the CIRP, including home buyers as financial creditors. The Interim Resolution Professional (IRP) identified home buyers as a class of creditors and appointed authorized representatives. Two Committee of Creditors (COC) meetings were held, but several resolutions failed to pass due to not meeting the required voting threshold. The voting share of home buyers is 58.1%, but

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## Issues and analysis

### Issue 1: Whether the various threshold voting share fixed for the decision of the COC under various sections …

**Ratio:** Section 21(8) of the I & B Code provides that all decisions of the COC shall be taken

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**Reasoning:** The Members that constitute this Bench expressed difference of opinion on the point

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**Interpretation:** The interpretation of the voting share requirements is crucial for the smooth

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**Application:** The court will need to apply the relevant sections of the IBC and CIRP

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Saroj Ra…
- **Appellants:** Jaypee Greens…
- **Respondents:** Jaypee Infratech…; Jaypee Infratech…

## Timeline

- **2017-08-09 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) commenced for Jaypee Infratech Ltd. (JIL)…
- **2017-01-01 — Writ Petitio…**: Home buyers filed a writ petition…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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