The amendment in Section 30 of the Insolvency and Bankruptcy Code, 2016 shall be applicable to all Resolution Plans which were not approved by the Committee of Creditors or by Adjudicating Authority on the date of amendment.

The Ld. National Company Law Appellant Tribunal after observing the amendments in Section 30 of the Insolvency and Bankruptcy Code 2016 held that the amendment brought under the said section by amending the words “seventy five” percentage of voting rights to the words “sixty-six” of the voting shares of the Financial Creditor shall be applicable to all the resolution plans which have not been approved till the date of the said amendment, i.e 06.06.2018.

The same was held in the matter of SICOM Limited Vs. Alok Employees Benefit and Welfare Trust and Others Company Appeal (AT) (Insolvency) No. 344/2018 on 30.11.2018.

Challenge

The only limited issue in the said appeal was that whether the Ld. NCLT was right in disallowing the application of the Resolution Professional under Section 33(2) read with Section 60(5) of the Insolvency and Bankruptcy Code 2016 (hereinafter referred to as IBC) with a direction to the said resolution professional to present the resolution plan before the committee of creditors for a re-look and proper consideration.

The brief facts of the case are that before the completion of the resolution period, the resolution plan was placed before the ‘Committee of Creditors’ and the same received 70.28% assenting voting share of the ‘Committee of Creditors’.

While the matter was still pending, sub section (4) of Section 30 of the IBC was amended and in place of the word “seventy-five” percentage of voting shares, the word “sixty six” of the voting shares of the financial creditor was inserted for approval of the Resolution Plan.

Held

The Ld. Tribunal after considering the arguments of the parties held that if the said amendment brought in by way of the amendment dated 06.06.2018 in Section 30 of the IBC shall be applicable in the cases of all the resolution plans which have not been approved by either the Committee of Creditors or by the Adjudicating Authority by 06.06.2018.

It was further held that the amended subsection (4) of Section 30 has come into force from prospective date of 6^th June, 2018, and, therefore, the said provision cannot be made applicable to the ‘Resolution Plan’ submitted prior to 6th June, 2018.