No.62/CB/2023 Kotak Mahindra Bank Ltd. categorized as a financial creditor with voting right of 0.64%. Ocean Capital Market Limited, hereinafter referred to as “Resolution Applicant”, participated in the bid process of the Corporate Debtor. There were no other bidders who participated in the bidding process. The Resolution Professional put the Resolution Plan to vote without giving clarification on various issues sought by the members of the Committee of Creditors. The Resolution Professional has not examined the Resolution Plan to confirm that the Resolution is in compliance with the Law. The Resolution Plan has been approved by the Committee of Creditors with 76.67% votes in favor and 17.11% votes against the Resolution Plan. Two Financial Creditors with 6.22% votes remained absent from voting. The Resolution Plan contemplates the assignment of the entire debt to the Resolution Applicant. Hence entire security interest shall be transferred to the assignee. Upon upfront payment to Financial Creditors, the financial creditors shall severally and/or jointly assign the entire security interest including personal guarantee, corporate guarantee, and other security interests to the Resolution Applicant. The Financial Creditor shall assign all original guarantee deeds and all other relevant security documents including title deeds, Hypothecation and Pledge Agreements, share certificates, and/or any other security documents whatsoever under the said personal and Corporate Guarantees to the Resolution Applicant (RA). The Financial Creditors shall immediately on approval of the Resolution Plan by the Adjudicating Authority withdraw all legal suis with any Court of Law, Debt Recovery Tribunal or any other authority whatsoever. This is not as per law because dissenting Financial Creditors cannot be compelled to release third-party guarantees & third-party collaterals in the Resolution Process of the Corporate Debtor. Without making any valuation, the transfer of such guarantees by way of assignment is arbitrary and is beyond the commercial wisdom of the Committee of Creditors.
