Landmark judgment in Jaypee Kensington Boulevard Apartments Welfare Association and Ors. Vs. NBCC (India) Ltd. and Ors. – Supreme Court
This judgment covers:
A. Commercial decision of CoC and the limited Judicial Review or the jurisdiction of Adjudicating Authority in dealing with a Resolution Plan.
A.1 Role of Resolution Professional, Resolution Applicant and Committee of Creditors (CoC).
A.2 Decision of Liquidation is with CoC.
A.3 Limited judicial review available to NCLT lies within the four corners of Section 30(2) of IBC.
A.4 Grounds on which a Resolution Plan can be challenged.
A.5 The limited judicial review as laid down in Essar Steel judgment.
A.6 Power of approval conferred on the Adjudicating Authority in Section 31 of the Code.
A.7 Assessment about maximisation of the value of assets.
B. Simultaneous voting over two Resolution Plans by CoC.
C. Treatment of Dissenting Financial Creditor, Secured Financial Creditor and Operational Creditor.
C.1 Issue in the present case.
C.2 The expression “payment” occurs in Section 30(2) of the Code.
C.3 Payment of CIRP Cost and Debt of Operational Creditors has to be in terms of Money alone.
C.4 Payment to Dissenting Financial Creditors has to be in terms of Money alone.
C.5 A Dissenting Financial Creditor is a Secured Creditor.
C.6 Interpretation of Explanation 1 to clause (b) of Section 30(2).
C.7 No estoppel against the Dissenting Financial Creditor.
C.8 Option on pay in Cash or in kind.
C.9 Payment under Section 8 of IBC.
D. Modification in Resolution Plan by NCLT without sending back to CoC.
E. Rights of Minority Home Buyers/Allottees/dissatisfied homebuyers/Dissenting Homebuyers.
E.1 Voting Share mechanism in case of class of HomeBuyers/Allottees.
E.2 The minority of those who vote, as also all others within that class, are bound by that decision.
E.3 For Section 25A(3A) of IBC, majority of 50% is of those homebuyers who cast their vote.
E.4 The interplay of RERA and IBC.
F. Other Matters.