IBBI suspends insolvency professional for 3 months over CoC vote issue
In short
IBBI has suspended an insolvency professional for 3 months. The disciplinary committee said the person could not exclude non-voting SBI to show 66% approval for a resolution plan.
What the reporting says
The IBBI Disciplinary Committee suspended an insolvency professional for three months after holding that Section 30(4) of the IBC requires 66% of the total voting share. The committee said excluding non-voting SBI to show 66% Committee of Creditors approval was impermissible. The order affects how resolution-plan voting shares are counted in insolvency cases.
Why it matters
The IBBI Disciplinary Committee suspended an insolvency professional for three months after concluding that Section 30(4) of the IBC requires 66% of the total voting share. It found that excluding non-voting SBI to show Committee of Creditors approval was not allowed. The order affects resolution-plan approval standards in insolvency proceedings.