# In the matter of Pal Infrastructure and Developers Pvt Ltd. IA 2504 of 2019 and other IAs in IB-755(PB)-2018

> NCLT judgment dated 2020-06-26. Citation: TCN-2020-NCLT-01112. The case involves an application for urgent hearing regarding the correction of voting results…

- **Court:** NCLT
- **Order date:** 26 Jun 2020
- **Citation:** TCN-2020-NCLT-01112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pal-infrastructure-and-developers-pvt-ltd-ia-2504-of-2019-and-other-ias-in-ib-75-83288fcd

## Summary

### Background

The case involves an application for urgent hearing regarding the correction of voting results computed by the Interim Resolution Professional (IRP) and the appointment of a new Resolution Professional (RP). The application was filed due to alleged violations of Section 25A(3A) of the Insolvency and Bankruptcy Code. Despite being listed multiple times, the application was not adjudicated due to objections raised by the IRP and some homebuyers who opposed the replacement of the IRP. The CoC meeting showed that a majority of the allottees voted for the replacement of the IRP with the RP.

## Facts

SCSL Buildwell Private Limited is the financial creditor, and Pal Infrastructure & Developers Pvt. Ltd. is the corporate debtor. An application was filed for urgent hearing to correct voting results wrongly computed by the IRP and to appoint Mr. Ganga Ram Agarwal as the Resolution Professional (RP) in place of the current IRP. The application was delayed due to objections from the IRP and some homebuyers. In the second CoC meeting, the class of allottees (homebuyers) comprised 72.394% of the voting share. They voted for the replacement of the IRP with the aforementioned RP, with a voting share of 38.92% of the allottees comprising 72.394%. The IRP argued that the allottees' vote was below 66% of the total voting share. The applicant counsel cited the Supreme

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## Issues and analysis

### Issue 1: Whether the voting by the Authorized Representative (AR) on behalf of the homebuyers should be …

**Ratio:** Section 25A(3A) of the Insolvency and Bankruptcy Code stipulates that if a class of

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**Reasoning:** The court reasoned that the legal proposition envisaged under the Code indicates that if

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**Interpretation:** This section is interpreted to mean that the vote of the AR is binding on all

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**Application:** In this case, since the class of creditors (homebuyers) present in the meeting

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## Parties

- **Judges:** B.S.V. Prakash…; Sh. Hemant Kumar…
- **Appellants:** SCSL Buildwell…
- **Respondents:** Pal Infrastructure…

## Timeline

- **2019-11-15 — Listing of App…**: Application listed for…
- **2019-11-22 — Listing of App…**: Application listed for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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