The case involves a resolution plan submitted for approval in IA 68/2021. The State Bank of India (SBI) expressed concerns about fraudulent conduct by the promoters. SBI, representing 37.87% of the CoC voting share, decided to withdraw its approval for the resolution plan. The other financial creditors also decided to withdraw their approval. The plan was initially approved by 98% of the CoC members, but after SBI's withdrawal, the vote share fell below the required 66%.
The resolution plan for the Corporate Debtor was initially approved by 98% of the Committee of Creditors (CoC). State Bank of India (SBI), holding 37.87% of the voting share, raised concerns regarding fraudulent conduct by the promoters. Consequently, SBI withdrew its approval for the resolution plan in IA 68/2021. Other financial creditors followed suit, withdrawing their consent as well. This withdrawal caused the voting share in favor of the plan to fall below the statutory requirement of 66% as mandated by Section 30(4) of the Insolvency and Bankruptcy Code (IBC). The SBI proposed Mr. Shailesh Desai as the liquidator. The relevance of SBI's withdrawal lies in its significant voting share, which directly impacted the plan's eligibility for approval under the IBC.
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State Bank of India placed an affidavit…
Reference to the last…
The case involves a resolution plan submitted for approval in IA 68/2021. The State Bank of India (SBI) expressed concerns about fraudulent conduct by the promoters. SBI, representing 37.87% of the CoC voting share, decided to withdraw its approval for the resolution plan. The other financial creditors also decided to withdraw their approval. The plan was initially approved by 98% of the CoC members, but after SBI's withdrawal, the vote share fell below the required 66%.
The resolution plan for the Corporate Debtor was initially approved by 98% of the Committee of Creditors (CoC). State Bank of India (SBI), holding 37.87% of the voting share, raised concerns regarding fraudulent conduct by the promoters. Consequently, SBI withdrew its approval for the resolution plan in IA 68/2021. Other financial creditors followed suit, withdrawing their consent as well. This withdrawal caused the voting share in favor of the plan to fall below the statutory requirement of 66% as mandated by Section 30(4) of the Insolvency and Bankruptcy Code (IBC). The SBI proposed Mr. Shailesh Desai as the liquidator. The relevance of SBI's withdrawal lies in its significant voting share, which directly impacted the plan's eligibility for approval under the IBC.
State Bank of India placed an affidavit…
Reference to the last…