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Issues: (i) Whether a registered agreement of sale, without transfer of title, possession, or other proprietary interest, creates a security interest so as to entitle the applicants to be treated as secured financial creditors; (ii) Whether the applicants were entitled to equitable treatment or any interference with the Committee of Creditors' consideration and approval of the resolution plan.
Issue (i): Whether a registered agreement of sale, without transfer of title, possession, or other proprietary interest, creates a security interest so as to entitle the applicants to be treated as secured financial creditors.
Analysis: A secured creditor exists only where a security interest is created in respect of an asset. A mere agreement to sell confers only a contractual right to enforce performance against the debtor and does not, by itself, create any charge, mortgage, encumbrance, or transfer of interest in the property. Registration of the agreement does not change its character. In the absence of any conveyance of proprietary interest or creation of charge, the applicants could not be elevated to the status of secured creditors. The fact that one agreement referred to an existing charge in favour of another financier reinforced that no security interest had been created in favour of the applicants.
Conclusion: The applicants were not secured financial creditors.
Issue (ii): Whether the applicants were entitled to equitable treatment or any interference with the Committee of Creditors' consideration and approval of the resolution plan.
Analysis: The classification between secured and unsecured creditors is recognised under the insolvency framework and cannot be altered by the Tribunal in the absence of a legal basis. The applicants' complaints regarding non-supply of minutes, cancellation of undivided share, fresh invitation for expression of interest, and reconsideration of claims were unsupported by material and did not justify interference with the commercial decision of the Committee of Creditors, which had approved the resolution plan with a substantial voting share.
Conclusion: No interference with the Committee of Creditors' decision was warranted and the applicants were not entitled to the reliefs sought.
Final Conclusion: The applications failed on merits because the applicants had no legally recognised security interest in the corporate debtor's property and could not prevent the resolution process from proceeding on that basis.
Ratio Decidendi: A registered agreement of sale, without creation of a charge or transfer of proprietary interest, does not create a security interest and cannot confer secured creditor status under insolvency law.
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