Voting share in the Committee of Creditors depends on actual disbursement to the corporate debtor, not co-borrowers' liability.

In insolvency proceedings, a financial creditor's voting share in the Committee of Creditors is computed with reference to the amount actually disbursed to the concerned corporate debtor, not the full liability claimed under a common loan agreement. Where a loan is sanctioned to co-borrowers but disbursed separately, the disbursements made to other borrowers cannot be clubbed with the corporate debtor's exposure for claim computation or voting share allocation. On that basis, reallocation of the voting share to reflect only the amount credited to the corporate debtor was upheld, and the challenge to that approach failed.

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Issues: Whether the financial creditor's voting share in the Committee of Creditors was to be computed on the basis of the entire loan liability claimed under the common loan agreement or only on the amount actually disbursed to the corporate debtor in the insolvency proceeding against that corporate debtor.

Analysis: The loan was sanctioned to three co-borrowers under a common agreement, but the record showed that the disbursement was made separately to each borrower in specified amounts. In the insolvency proceedings against the present corporate debtor, only the amount actually credited to its account could be taken into account for determining the financial creditor's claim and corresponding voting share. The liability of the other co-borrowers could not be clubbed with the present corporate debtor for this purpose.

Conclusion: The voting share was correctly reallocated on the basis of the amount disbursed to the corporate debtor alone, and the challenge to the reallocation failed.

Final Conclusion: The appeal was dismissed and the adjudicating authority's approach to computing the financial creditor's voting share was upheld.

Ratio Decidendi: In insolvency proceedings, a financial creditor's voting share in the Committee of Creditors must be determined with reference to the amount actually disbursed to the corporate debtor concerned, and not by aggregating disbursements made to other co-borrowers in separate or distinct proceedings.

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