Mortgagee Bank cannot Seek Exclusion of Property from Resolution Plan Approved by Unit Holders Having Conveyance Deeds: NCLAT Dismisses

The NCLAT has dismissed HDFC's appeal, ruling that a mortgagee bank cannot seek exclusion of a property from a resolution plan approved by unit holders with conveyance deeds. This decision reinforces the primacy of the rights of unit holders who have completed their property purchases with conveyance deeds in insolvency resolution processes. It also clarifies that the interests of secured creditors like banks are subject to the established rights of such unit holders. This ruling has significant implications for the balance of power between creditors and property buyers in insolvency scenarios.