Mortgagee Bank Cannot Seek Exclusion Of Property From Resolution Plan Approved By Unit Holders Having Conveyance Deeds: NCLAT

The NCLAT (National Company Law Appellate Tribunal) ruled that a mortgagee bank cannot seek the exclusion of a property from a resolution plan approved by unit holders who possess conveyance deeds. The tribunal held that once a resolution plan is approved by the requisite majority, it is binding on all stakeholders, including secured creditors like the mortgagee bank, especially when unit holders have valid conveyance deeds for their properties.