The court upheld the validity of the resolution plan approved by the Committee of Creditors, emphasizing that allegations of related party status must be substantiated with evidence, and highlighted the majority's decision under the Insolvency and Bankruptcy Code.

JUDGMENT

[Per: Barun Mitra, Member (Technical)]

The present appeal filed under Section 61 of Insolvency and Bankruptcy Code 2016 (‘IBC’ in short) by the Appellant arises out of the Order dated 06.10.2023 (hereinafter referred to as ‘Impugned Order’) passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-IV) in IA-2688/2023 in CP.IB.68(MB)2021. By the Impugned Order, the Adjudicating Authority dismissed the I.A. No. 2688/2023 filed by present Appellant representing 77 Homebuyers as a class of creditor seeking rejection of the Committee of Creditors (‘CoC’ in short) approved resolution plan filed by the Resolution Professional (‘RP’ in short) pending for approval of the Adjudicating Authority in IA-2319/2023. Aggrieved by this impugned order, the present appeal has been preferred by the Appellant.

2. Coming to the factual matrix at hand, the salient points are as outlined below:

 The Appellant and other Home Buyers had purchased flats in the real estate project - ‘Nirmal Sports City’ of the Corporate Debtor- Modella Textile Industries Ltd. in 2012-13.

 ECL Finance Limited (‘ECLF’ in short), which was a part of the Edelweiss group granted a Term Loan to the Corporate Debtor on 24.07.2013.

 The Corporate Debtor/Respondent No. 4 passed a resolution on 10.03.2016 for the issuance of unlisted, unrated, secured, redeemable, Non-Convertible Debentures (‘NCD’ in short) by way of private placement which were offered to the Edelweiss group. The Debenture Trustee for the issue was IDBI Trusteeship Services Ltd. and a Debenture Trust Deed (‘DTD’ in short) was executed between the Corporate Debtor and IDBI Trusteeship Services Ltd. on 22.03.2016.

 ECLF granted another loan on 28.09.2016 to the Corporate Debtor. The Corporate Debtor passed another resolution for the issuance of NCD on 02.11.2017 by way of private placement again to the Edelweiss group companies and another DTD was executed on 17.11.2017 with respect to this issue of debentures.

 In the year 2017, the Corporate Debtor entered into an Agreement with Godrej Properties Limited and relaunched the project as "Godrej Alive". Under the project "Godrej Alive," all the Home Buyers were offered to either continue in the project as per the terms and conditions earlier agreed in the allotment letters from the Corporate Debtor or to exit the project with 9% compound interest. However, this project also failed to take off.

 The Corporate Insolvency Resolution Process (‘CIRP’ in short) of the Corporate Debtor was initiated upon admission of a petition under Section 7 of IBC on 04.05.2022.

 In the 12^th CoC meeting, the resolution plan proposed by a consortium of Ashar Ventures and Ors/Respondent No. 3 was approved by the CoC with 88.95% vote share. The proposed resolution plan of Respondent No.3/SRA was voted against by the Homebuyers who had 11.05% vote share.

 The Respondent No. 1/RP had filed I.A. No 2319 before the Adjudicating Authority for approval of the resolution plan of Respondent No.3/SRA while the present Appellant representing 77 Homebuyers had filed I.A. No. 2688/2023 in C.P. (IB) No. 68(MB)2021 inter-alia seeking rejection of the said plan.

 The Adjudicating Authority dismissed the I.A. No. 2688/2023 filed by the Appellant. Assailing the impugned order, the present appeal has been preferred.

3. We have heard Ms. Anjali Sharma, Learned Counsel appearing for the Appellant; Shri Krishnendu Dutta, Learned Sr. Counsel for the Resolution Professional; Shri P. Nagesh and Shri Amit Sibal Learned Sr. Counsels for the Respondent No.2/Financial Creditor and Shri Arvind Verma, Learned Sr.Counsel appearing for the SRA.

4. Making his submissions, the Lea