Judgment Summaries (NCLT) – Pal Infrastructure & Development Pvt. Ltd.

  December 22, 2021

In the matter of Pal Infrastructure & Development Pvt. Ltd. (Principal Bench New Delhi (26.06.2020))

Facts

In this case, an application was filed seeking the correction of the voting results (on the proposal to replace the IRP and appoint another RP) which were wrongly computed by the IRP in violation of Section 25A(3A) of the Code. Three Allottee Associations submitted that in the second CoC meeting, the class of Allottees (Homebuyers) comprised of 72.394% voting share of the CoC, and they voted for replacement of the IRP with another RP with a voting share of 38.92%. However, the IRP did not move an application for his replacement raising certain objections. The counsel for the applicant contended that Section 25A(3A) of the Code states that if a proposal receives more than 50% of voting share of FCs in a class, the same was to be treated as 100% voting by the class in favour of the proposal. They placed on reliance on Pioneer Urban Land and Infrastructure Ltd. v. Union of India to re-iterate the same. The counsel further stated that the removal of IRP was a complete discretion of the CoC and it required no reason or justification to be recorded. 

Order

After deliberating on Section 25A(3A) of the Code, the tribunal allowed the application and replacement of the IRP. The tribunal further observed that “the IRP who is supposed to remain neutral, has come against the CoC as if he has personal interest in the affairs of the CD.” 

 

Full text of the order accessible here.

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