As per Section 30(4) of the IBC, the CoC has the jurisdiction to decide on the distribution of the amount either based on the vote share of the Financial Creditors or as per their security interest – HDFC Bank Ltd. Vs. Pratim Bayal, RP of Birla Tyres Ltd. and Ors. – NCLAT New Delhi
The Hon’ble NCLAT referring various judgments held that after amendments made in Section 30(4), the CoC have been given jurisdiction to take a decision as to distribute the amount as per vote share of the financial creditor or as per the security interest which is in their commercial wisdom and decision taken by requisite vote share by the CoC is final and binding on all including the dissenting financial creditors and dissenting financial creditors at best is entitled for minimum of liquidation value. The use of expression “may” in Section 30(4) clearly indicate the discretion vested in the CoC to take into account of the matter of security interest of the secured creditors in approving the Resolution Plan.