Voting in the Committee of Creditors

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....solvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professional Agencies (By mail to registered email addresses and on website of the IBBI) Dear Madam / Sir, Sub: Voting in the Committee of Creditors The Insolvency and Bankruptcy Code, 2016 (Code) prescribes voting requirements for various approvals by the Committee of Creditors (CoC)....

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....bstained from voting for the resolution plan, approved by the CoC. In this background, an issue has been raised whether a financial creditor, who is not yet admitted as a member of the CoC, would be considered a dissenting or abstaining financial creditor. 2. The relevant provisions in this regard are: a. Section 13 of the Code mandates a public announcement calling for the submission ....

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....date of admission of such claim. And such inclusion shall not affect the validity of any decision taken by the CoC prior to such inclusion. c. Section 18 of the Code mandates the Interim Resolution Professional to receive and collate all claims submitted by creditors to him, pursuant to public announcement under sections 13 and 15 of the Code and constitute a CoC. It also mandates him to ....

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....laims received under regulation 12. 3. A perusal of the above provisions make it clear that- a. The Code read with regulations provide for the manner of collection and verification of claims. b. The Interim Resolution Professional constitutes the CoC comprising financial creditors, whose claims have been admitted, as members. c. The voting power of a member in the CoC....