13 June 2019
The National Company Law Tribunal (NCLT) rejects a plea by a group of homebuyers to treat them as a separate sub-class of creditors at committee of creditors (CoC) meetings for the insolvency resolution of Jaypee Infratech.
The plea sought this classification so that absentee homebuyers’ votes can be factored in as ‘yes’ vote. The judgement stated; “The CoC, taking into consideration Section 21(2) of Insolvency and Bankruptcy Code, 2016, shall comprise all financial creditors, and must be construed as one and cannot be segmented class-wise particularly for the purpose of computation of voting share.”