This was challenged before the appellate body NCLAT by a group of 15 financial creditors (homebuyers), claiming that the resolution plan was non-compliant with the provisions of the Insolvency and Bankruptcy Code (IBC).
These 15 homebuyers had alleged that the plan suffers from serious irregularities and is fraught with surreptitious amendments and insertions which are prejudicial to the genuine and legitimate interests of the members of the Committee of Creditors.
However, a two-member NCLAT bench said the appellants, the dissenting home buyers, who have exercised their right to vote or not cared to exercise their right to vote, form a “miniscule minority” opposing the approval of the resolution plan of Alpha Corp Development.
“Having done so, they now do not possess an independent right to challenge the majority vote (99.97 per cent) of the homebuyers,” said NCLAT.
The appellate tribunal said: “We are of the clear opinion that even if some of the homebuyers have not voted in favour of the plan, but the majority (more than 50 per cent) have voted in favour of the resolution plan approving the same, the dissenting homebuyers who are in minority have to go along with the views of the majority.”
NCLAT order pointed out that out of these 15 appellants, the name of one homebuyer does not appear in the record of CoC.
Out of the rest 14 appellants, 8 homebuyers participated in the voting held by the authorised representative. Their votes are thus recorded in the voting whereas 6 have not voted at all.
“Thus, it is clear that a minuscule number of homebuyers have come before us as applicants and out of this small number, six have not even cared to cast their vote, and have to sail with the decision of the majority of homebuyers. This is the scheme of IBC,” NCLAT said.
In July last year, Alpha Corp had said it would invest around Rs 900 crore to complete three stalled projects of Earth Infrastructure that it acquired through insolvency process.
The three projects, comprising developable and saleable area of around 4.5 million square feet, are located in Gurugram and Greater Noida.
These projects were launched during 2010-12, but not completed in the stipulated time period.
Approximately 2,900 units are to be developed in these projects.
Ananta by Alpha Corp (erstwhile Earth Copia) – Sector 112, Gurugram is a housing project launched in February 2011; Earth Sapphire Court, Greater Noida, is a commercial project launched in July 2010; and Earth Techone, located on Yamuna Expressway in Greater Noida, is a mixed use project launched in June 2012.
Alpha Corp is currently developing many projects in Haryana, Uttar Pradesh, Punjab and Gujarat. PTI KRH MJH HVA