NCLAT Rules: 90% CoC Approval Needed for Section 12A Proposal, Rejects Homebuyers' Majority as Full Support.

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....Withdrawal of application which was admitted earlier for CIRP - Manner of computation of voting with regard to application u/s 12A - The NCLAT clarified that for a proposal under Section 12A to be approved, it must receive the support of 90% of the CoC's voting share. It rejected the Adjudicating Authority's interpretation that a majority vote within the homebuyers' class could be extrapolated to mean 100% support from that class for the purpose of Section 12A approval. - The NCLAT held that, since the proposal u/s 12A having not been approved by 90% vote share of the CoC, the order dated 24.05.2023 has to be set aside reviving the CIRP of the Corporate Debtor.....