Section 21 relates to CoC which normally is comprising of FC of the CD but does not allow the related party who owes financial debt- Kamineni Steel & Power India Pvt. Ltd. Vs. Indian Bank & Ors. – NCLAT
From plain reading of Section 21 (8) (as it then was) it is clear that all the decisions of the ‘Committee of Creditors’ is required to be taken by a vote of not less than seventy-five percent of the voting shares of the ‘Financial Creditors’, including the approval of the ‘Resolution Plan’. Sub-section (8) of Section 21 being mandatory in nature, any plan which has not been approved by the ‘Committee of Creditors’ with voting shares of seventyfive percent, cannot be approved by the Adjudicating Authority as it will be against the provisions of Section 30(2)(e) of the ‘I&B Code’ which stipulates that the ‘Resolution Plan’ does not contravene any of the provisions of the law for the time being in force. Less than seventy-five percent of the voting shares of the ‘Committee of Creditors’ in the matter of approval of the ‘Resolution Plan’ being against the provisions of clause (e) of sub-section (2) of Section 30, it cannot be approved-
