Any increase in the claim amount of the Assenting Financial Creditors due to the invocation of a Bank Guarantee cannot be a ground for challenge by the Dissenting Financial Creditors on discrimination basis – Union Bank of India Vs. Ms. Vandana Garg (Erstwhile RP/Monitoring Committee Chairperson of Jyoti Structures Ltd.) – NCLT Mumbai Bench
The Adjudicating Authority observed that Section 30(2)(b) of the Code provides for the payment of debts of the Dissenting FCs in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with Section 53(1) of the Code in the event of liquidation. Any increase in the claim amount of the Assenting FCs due to the invocation of such BG cannot be a ground for challenge by the Dissenting FCs on grounds of discrimination. Further, the decision to include the invoked amount of the BG to the fund-based debts is a commercial decision of the CoC. Further, Resolution Plan once approved by the AA shall stand frozen and binding on all stakeholders including FCs
