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CS Professional · Corporate Restructuring, Valuation and Insolvency · Preparation and Approval of Resolution Plan

Kiran Textiles Ltd's resolution applicant, Anand Holdings, is not a financial creditor of the company. The CoC is meeting to consider Anand's plan. Which statement is correct under section 30?

Anand may attend the CoC meeting in which its plan is considered but cannot vote. Section 30(5) denies a voting right to a resolution applicant unless that applicant is also a financial creditor, which Anand Holdings is not.

  1. AAnand may attend the meeting and may vote because its plan is under consideration
  2. BAnand may attend the meeting but has no right to voteCorrect
  3. CAnand cannot attend the meeting at all
  4. DAnand may vote only on its own plan with 66% weightage

Explanation

Section 30(5) allows the resolution applicant to attend the CoC meeting where its plan is considered, but it has no voting right unless it is also a financial creditor. Anand is not one, so it can attend but not vote.

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