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Resolution Plan Violates IBC: Tribunal Orders Pro-Rata Cash Payments to Operational Creditors, Modifying NCLT Decision.
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....Approval of Resolution Plan - The Tribunal found the resolution plan’s treatment of operational creditors contrary to Section 30(2)(b) of the IBC, as operational creditors were offered payments through equity rather than cash, which is not aligned with the precedence established by the Supreme Court. - The Tribunal modified the order of the NCLT to ensure that the resolution plan complies with the provisions of Section 30(2)(b)(ii) of the IBC. It directed that the resolution applicant distribute the plan amount to the operational creditors on a pro-rata basis as per the said section, prioritizing cash payments over other forms.....