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))


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. 


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.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts

“In adherence to the rules and regulations of Bar Council of India, Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost Accountants of India and any other professional bodies (whether mentioned or not herein), this website has been designed only for the purposes of circulation and exchange of information, and not for advertising.
Your use of ibc16.com’s services are completely at your own risk. Readers and subscribers should seek proper advice from an expert professional before acting on the information mentioned herein. The content on this website is general information and none of the information contained on the website is in the nature of a legal opinion, or otherwise amounts to any legal advice. The user is requested to use their judgment, and exchange of any such information shall be solely at the user’s risk.
ibc16.com does not take responsibility for the actions of any member registered on the site, and is not accountable for any decision taken by the reader based on information/commitment provided by the registered member(s). By clicking ‘ENTER’, the visitor acknowledges that the information provided on the website (a) does not amount to advertising or solicitation, and (b) is meant only for his/her understanding about our activities and who we are.”