In case of a consortium of Banks, lead Bank having majority voting share (more than 75%) cannot give its approval on behalf of another Bank for the settlement/withdrawal of CIRP proceedings and IBC overrides RBI’s guidelines – Narendra Jindal Vs. HDFC Bank Ltd. – NCLT New Delhi Bench Court-III
Following issues are involved in this case:
Issue 1 – Whether NCLT can issue a direction to one of the members of the consortium to give its approval to the withdrawal application, Form FA.
Issue 2 -Whether in case of a consortium of Banks, the Lead Bank having majority voting share can give its approval on behalf of another Bank even though the said Bank does not give its consent or reject the proposal of withdrawal of CIRP application.