The CIRP was initiated through an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 made by Beacon Trusteeship Limited. In the course of resolution proceedings three potential resolution applicants put forward their resolutions and of these, the one proposed by Mantra Properties secured the maximum votes.
But in the first voting process the creditors were split with one voting for the resolution and another in favor of an alternative resolution thus falling short of the requisite 66% statutory majority.
In accordance with Regulation 39(3B) of the CIRP Regulations, the plan was put to vote again as the highest-voted plan. While one CoC member reaffirmed its approval the other …