Dissenting Financial Creditors Are Entitled To Receive Payments On Pro-Rata Basis Of Resolution Plan Value Rather Than Liquidation Value: NCLAT

The NCLAT held that dissenting financial creditors are entitled to receive payments based on a pro-rata basis of the resolution plan value rather than the liquidation value. This ruling protects the interests of dissenting creditors and ensures they receive a fair share of the resolution plan's value. It prevents them from being unfairly disadvantaged compared to assenting creditors. This decision promotes a more equitable distribution of proceeds under the IBC's resolution framework.