NCLT Bench quashes 75% vote requirement

Indian Overseas Bank, Central Bank of India and Bank of Maharashtra resisted resolution plan citing the 75% vote share clause

In a trend-setting order, the bench here of the National Company Law Tribunal (NCLT) has struck down an attempt by a group of banks to block an insolvency resolution plan by citing the 75 per cent vote share requirement prescribed under Section 30(4) of the Insolvency and Bankruptcy Code (IBC).

The bench of judicial member Rajeshwara Rao Vittanala and technical member Ravikumar Duraisamyapproved a one-time settlement (OTS) as agreed to by Kamineni Steel & Power, a Hyderabad-based corporate debtor, as part of a resolution plan cleared by a group of creditors with 66.67 per cent voting power.

Speaking to Business Standard on