TaxTMI 
TaxTMI 
2022 (11) TMI 648
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....others, have filed this appeal under section 61 of the Insolvency and Bankruptcy Code, 2016 (in short 'IBC') aggrieved by the order dated 8.6.2021 (hereinafter called 'Impugned Order') passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) in CA (AT) (Ins) No. 914 of 2019 and I.A No. 5 of 2020 filed in Company Petition No. IB (401)(ND)/2017. 2. The Appellant has stated and argued that a resolution plan was submitted by M/s. Alpha Corp. Development Private Limited (Respondent No.2) in the Corporate Insolvency Resolution Process (in short 'CIRP') of the corporate debtor Earth Infrastructure Ltd. The Appellant has claimed that this resolution plan, which was approved by the Adjudicating Authority vide Impugned Order dated 8.6.2021, was non-compliant with the provisions of section 30(1) and 30(2) of the IBC and suffers from serious irregularities and is fraught with surreptitious amendments and insertions which are prejudicial to the genuine and legitimate interests of the members of the Committee of Creditors (in short 'CoC'). 3. The Appellant has further stated that the proposed resolution plan does not make any provision regarding payment of debt to 56% of....
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....f section 30 of the IBC. 7. The Learned Counsel for Respondent No. 2 has brought to our attention section 25-A (3A) of the IBC wherein it is provided that the allottees in a housing project shall be represented in the CoC meeting through their "Authorised Representative', who will act and vote in the CoC on the basis of the views given by simple majority i.e. more than 50% of the homebuyers voting in connection with a resolution/proposal. After having gone through this process of submitting their views through the Authorised Representative, the individual homebuyers shall not have any independent right to challenge the action taken by the Authorised Representative, if he has asked in accordance with the requirements of section 25-A (3A). He has also claimed that no documentary evidences have been placed on record with respect to filing and acceptance of the claim of Appellants No. 1 to 15 and therefore, the said Appellants have not been able to show that they are homebuyers, whose claims have been accepted by the Resolution Professional and on this ground too, they are not entitled to prefer this appeal. 8. We reproduce below the relevant sub-sections (1) and (3A) of section 25-A....
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.... whose selection is governed by Regulation 16-A of CIRP Regulations. Once the Authorised Representative is selected in the prescribed manner as per Regulation 16-A, he shall represent the financial creditors in class (in the present case homebuyers are the financial creditors in class) in the CoC as per section 21 of the IBC and shall participate in the meeting of the CoC as required under section 24 of the IBC. The manner of eliciting the views of the financial creditors in class by the Authorised Representative, is to be done by the Authorised Representative in accordance with sub-regulation 9 of Regulation 16-A of the CIRP Regulations. 10. A perusal of the provisions relating to selection of Authorised Representative, the manner and modality of her/his participation in the CoC meetings to represent the views of the financial creditors in class is provided very clearly and elaborately in the IBC and the CIRP Regulations. The Authorised Representative so selected to participates in the CoC meetings as well as in decision making in the CoC, he does so on behalf of all the home allottees/homebuyers and the view of individual homebuyer is therefore subsumed in the majority (of more ....
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....an 50% of the voting share of the financial creditors within a class, the minority of those who vote, as also all others within that class, are bound by that decision. There is absolutely no scope for any particular person standing within that class to suggest any dissention as regards the vote over the resolution plan. It is obvious that if this finality and binding force is not provided to the vote cast by the authorised representative over the resolution plan in accordance with the majority decision of the class, he is 6 Company Appeal (AT) (Insolvency) No. 283 of 2022 authorised to represent, a plan of resolution involving large number of parties (like an excessively large number of homebuyers herein) may never fructify and the only result would be liquidation, which is not the prime target of the Code. In the larger benefit and for common good, the democratic principles of the determinative role of the opinion of majority have been duly incorporated in the scheme of the Code, particularly in the provisions relating to voting on the resolution plan and binding nature of the vote of authorised representative on the entire class of the financial creditor/s he represents. 427. T....